Tradeweb agrees 1.97 billion dollar Trumid acquisition
Tradeweb has agreed to buy electronic bond-trading platform Trumid for approximately 1.97 billion dollars, largely in cash. The transaction would extend its reach across US corporate-bond trading, from issuance to secondary markets. Completion is targeted for the first half of 2027 and remains subject to regulatory conditions; the announced price includes acquired tax assets.
Economics & Markets··Morning
Cash and tax assets make up the announced price
Tradeweb, an operator of electronic financial marketplaces, has agreed to acquire Trumid, a platform for trading US corporate bonds, for approximately 1.97 billion dollars. The agreement covers a business valued at 1.75 billion dollars and about 220 million dollars in acquired tax assets. The transaction would bring the two electronic credit-trading operations together once its closing conditions are met.[1], [2]
The payment is largely cash, with an equity component of 82 million dollars. The detailed terms put cash consideration at 1.888 billion dollars, subject to customary adjustments for cash, debt, net working capital and transaction expenses. Existing cash is expected to finance most of that payment. Both companies’ boards approved the agreement unanimously. The tax assets are valued on a present-value basis using a 7 per cent discount rate.[2]
Tradeweb seeks a wider reach in corporate bonds
Trumid handles US-dollar corporate bonds across investment-grade, high-yield, distressed and emerging-market categories. Tradeweb wants to expand services across a bond’s lifecycle, including new issuance, trading before formal issuance and transactions in the secondary market. Chief executive Billy Hult described US credit as a long-term growth opportunity as trading becomes increasingly electronic and clients seek access to liquidity.[1]
The buyer also aims to add Trumid’s hedge-fund and systematic-participant network to its own large institutional customer base. Tradeweb expects the deal to contribute to adjusted earnings per share in the first full year following completion. That is the company’s earnings expectation for the combined operation, rather than a financial result already achieved.[2]
Regulatory conditions govern the 2027 timetable
Completion is targeted for the first half of 2027. Conditions include the US antitrust waiting period, requirements relating to review by the UK Competition and Markets Authority and approval from the US Financial Industry Regulatory Authority, the securities industry’s regulator. The detailed agreement therefore sets out several regulatory steps before the acquisition can be completed.[2]
Either party can terminate if completion has not occurred by October 19, 2027, with contractual provisions allowing an extension to as much as 24 months after the agreement. In certain termination circumstances, Tradeweb must pay Trumid 105 million dollars.[2]
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