Tradeweb Prepares $785 Million For ICD Acquisition Deal
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Tradeweb Markets has announced the purchase of a financial service technology provider for organizations, Institutional Cash Distributors (ICD), for $785 million. The company runs electronic marketplaces for credits, rates, money markets, and equities for retail, wholesale, and institutional customers.
The acquisition of ICD and its innovative technology will enable Tradeweb to introduce novel and fast-growing customer channels. This is anticipated to serve corporate financial strategists, highlighting the firm’s focus on wholesale, institutional, and retail clients.
ICD Enable Corporate Treasury Institutions To Manage Liquidity
Institutional Cash Distributors was launched in 2003. Since then, it has continued to allow corporate treasury institutions from 65 industries across 45 nations to manage liquidity by venturing into money market funds and several other short-term products.
ICD is among the biggest institutional financial market fund portals in the United States. In 2023, the company realized average daily balances of over $230 billion. It boasts a secure, reliable, and growing client base, with a remarkable net promoter score and client retention.
ICD’s key offerings include ICD Portfolio Analytics and ICD Portal. The portal serves as a comprehensive hub for trading, analyzing, researching, and reporting on investments provided by more than 40 investment providers.
It is focused on giving access to various short-term products such as separately managed accounts (SMAs), deposits, and fixed-term funds. It also offers money market funds to users.
Furthermore, ICD is described as an Artificial intelligence-driven cloud solution for merging positions across a corporate treasury’s total portfolio, enabling reporting and analysis.
With the latest purchase, ICD will offer a comprehensive solution for asset managers around the world and corporate treasurers. This innovative solution will enable them to manage FX risk and short-term liquidity needs.
The Acquisition Enables ICD Clients To Easily Integrate Their Workflows
With this solution, ICD also aims to assist corporate treasures and asset managers in optimizing yield and duration through Tradeweb’s already-established suite of products. Customers in ICD can still completely integrate their workflows with major third-party treasury management and accounting platforms.
Tradeweb plans to fuel major growth and advancement by capitalizing on its global presence and providing financial market funds to its global client network.
Billy Hult, Tradeweb’s Chief Executive Officer, stated that the acquisition of ICD has allowed them to provide an innovative platform for corporate treasurers. He also revealed that it aids the provision of a solid strategic fit for Tradeweb and a fast-evolving channel amidst fixed-income markets.
The purchase is projected to boost Tradeweb’s modified earnings per share in the first 12 months after fulfilling the company’s return on invested capital goals. Tradeweb has announced that the transaction will be completed in the latter stages of 2024. However, move is subject to regulatory review and customary closing conditions.
