Tradeweb in Discussions to Acquire Australian Electronic Trading Platform Yieldbroker

Rhea-AI Summary

Tradeweb Markets Inc. (Nasdaq: TW) is in advanced discussions to acquire Yieldbroker, an Australian trading platform for government bonds and interest rate derivatives, with an anticipated purchase price of AUD 125 million. This all-cash transaction aims to enhance liquidity and transparency in fixed income markets by combining both companies' trading solutions. The acquisition will grant Yieldbroker's domestic clients access to Tradeweb’s global multi-asset platform while increasing pre-trade transparency for Tradeweb's clientele worldwide. Australia, home to the 5th largest pension fund market, presents significant growth opportunities for Tradeweb. However, the deal is contingent upon various approvals and customary closing conditions.

Positive

• Acquisition of Yieldbroker enhances Tradeweb's market position in Australia, a key financial market.
• Anticipated benefits include increased liquidity and pre-trade transparency for clients.
• The transaction is expected to leverage Tradeweb’s global multi-asset platform, enhancing service offerings.

Negative

• Transaction is subject to regulatory reviews and Yieldbroker stockholder approval, adding uncertainty.
• Potential integration challenges may arise post-acquisition.

NEW YORK--(BUSINESS WIRE)-- Tradeweb Markets Inc. (Nasdaq: TW), a leading, global operator of electronic marketplaces for rates, credit, equities and money markets, today released the following statement:

Billy Hult, CEO, Tradeweb Markets (Photo: Business Wire)

“Tradeweb is in advanced discussions to acquire Yieldbroker, a leading Australian government bond and interest rate derivatives trading platform covering the institutional, wholesale, and primary markets. Tradeweb anticipates that the acquisition would be an all-cash transaction with a purchase price of AUD 125 million.

We believe this transaction would leverage both firms’ innovative trading solutions and deep industry experience to create more liquid, transparent and efficient fixed income markets. This acquisition would provide Yieldbroker’s domestic client network, including superannuation funds, with access to Tradeweb’s global multi-asset platform, deep liquidity and advanced technology. Conversely, Tradeweb customers worldwide would benefit from increased liquidity, pre-trade transparency, and coverage of the Australian and New Zealand debt capital markets. Australia is home to the 5th largest pension fund market globallyⁱ, and we believe that this acquisition would help grow Tradeweb’s Asia Pacific footprint and provide meaningful opportunities for domestic and global clients.

Tradeweb can offer no assurance that a definitive agreement will be entered into, or if entered into that a transaction will be consummated. The potential deal remains subject to Yieldbroker stockholder approval, final definitive documentation, and would be subject to customary closing conditions and regulatory reviews.”

About Tradeweb Markets:

Tradeweb Markets Inc. (Nasdaq: TW) is a leading, global operator of electronic marketplaces for rates, credit, equities and money markets. Founded in 1996, Tradeweb provides access to markets, data and analytics, electronic trading, straight-through-processing and reporting for more than 40 products to clients in the institutional, wholesale and retail markets. Advanced technologies developed by Tradeweb enhance price discovery, order execution and trade workflows while allowing for greater scale and helping to reduce risks in client trading operations. Tradeweb serves approximately 2,500 clients in more than 65 countries. On average, Tradeweb facilitated more than $1.1 trillion in notional value traded per day over the past four quarters. For more information, please go to www.tradeweb.com.

Forward-Looking Statements:

This release contains forward-looking statements within the meaning of the federal securities laws. Statements related to, among other things, our outlook and future performance, the industry and markets in which we operate, our expectations, beliefs, plans, strategies, objectives, prospects and assumptions and future events are forward-looking statements.

We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors, including those discussed under the heading “Risk Factors” in documents of Tradeweb Markets Inc. on file with or furnished to the SEC, may cause our actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. In particular, preliminary average variable fees per million dollars of volume traded are subject to the completion of management’s final review and our other financial closing procedures and therefore are subject to change. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements contained in this release are not guarantees of future performance and our actual results of operations, financial condition or liquidity, and the development of the industry and markets in which we operate, may differ materially from the forward-looking statements contained in this release. In addition, even if our results of operations, financial condition or liquidity, and events in the industry and markets in which we operate, are consistent with the forward-looking statements contained in this release, they may not be predictive of results or developments in future periods.

Any forward-looking statement that we make in this release speaks only as of the date of such statement. Except as required by law, we do not undertake any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this release.

_____________________
ⁱ Willis Towers Watson Think Ahead Institute – Global Pension Assets Study - 2022

View source version on businesswire.com: https://www.businesswire.com/news/home/20230425006152/en/

Media contacts:

Daniel Noonan, Tradeweb, +1 646 767 4677, Daniel.Noonan@Tradeweb.com

Angeliki Kallipoliti, Tradeweb, +44 7824 327073, Angeliki.Kallipoliti@Tradeweb.com

Investor contacts:

Ashley Serrao, Tradeweb, +1 646 430 6027, Ashley.Serrao@Tradeweb.com

Sameer Murukutla, Tradeweb, +1 646 767 4864, Sameer.Murukutla@Tradeweb.com

Source: Tradeweb Markets Inc.

FAQ

What is the purpose of Tradeweb's acquisition of Yieldbroker?

The acquisition aims to enhance liquidity and transparency in fixed income markets, providing mutual benefits to both firms' client networks.

What is the expected purchase price of the Yieldbroker acquisition by Tradeweb?

The expected purchase price for the acquisition of Yieldbroker is AUD 125 million.

When can we expect the Tradeweb and Yieldbroker acquisition to be finalized?

The acquisition is subject to Yieldbroker stockholder approval and regulatory reviews, with no guaranteed timeline for finalization.

How will Tradeweb's acquisition of Yieldbroker impact its clients?

Clients will benefit from increased access to deeper liquidity and advanced technology in the Australian and New Zealand debt capital markets.

What risks are associated with Tradeweb's acquisition of Yieldbroker?

Risks include the uncertainty of obtaining necessary approvals and potential integration challenges after the acquisition.