Tradeweb Markets Inc., a global operator of electronic marketplaces for rates, credit, equities, and money markets, has announced its definitive agreement to acquire Institutional Cash Distributors, LLC (“ICD”), an institutional investment technology provider catering to corporate treasury organizations. The acquisition, valued at $785 million, is subject to customary adjustments and is expected to be funded through cash on hand.

Entering the Lucrative Corporate Treasury Market

With this strategic move, Tradeweb aims to diversify and enhance its client base by tapping into the corporate treasury market, which is experiencing rapid growth. Established in 2003, ICD serves over 500 corporate treasury organizations worldwide, including approximately 17% of the S&P 100 companies as of December 31, 2023.

The company facilitates investments in money market funds and other short-term products, managing liquidity for its clients across 65 industries and more than 45 countries. In 2023 alone, ICD recorded average daily balances exceeding $230 billion.

Billy Hult, the CEO, Tradeweb, said: “Acquiring ICD will further diversify our client and business mix, advancing our track record of expanding into adjacent markets to improve client workflows. As part of Tradeweb, ICD will be positioned to drive the adoption of electronic trading for corporate treasurers."

ICD’s flagship products, including ICD Portal and ICD Portfolio Analytics , offer comprehensive solutions for researching, trading, analyzing, and reporting on investments. The portal provides access to over 40 investment providers, primarily offering money market funds, fixed-term funds, and separately managed accounts. Meanwhile, Portfolio Analytics leverages AI-driven technology to aggregate positions across corporate treasuries' entire portfolios for in-depth analysis and reporting.

Enhancing Corporate Treasury Solutions Worldwide

By integrating ICD into its operations, Tradeweb aims to offer a solution for corporate treasurers and asset managers worldwide, addressing their short-term liquidity needs and FX risk while optimizing yield and duration. Additionally, ICD clients will retain the ability to integrate their workflows with leading third-party treasury management and accounting systems, enhancing operational efficiency.

The acquisition aligns well with Tradeweb’s strategic objectives, aiming to expand its product offerings and leverage its international presence to accelerate ICD’s growth and global expansion. Moreover, Tradeweb plans to capitalize on cross-selling opportunities between its existing client base and ICD’s offerings.

The transaction is anticipated to be accretive to Tradeweb’s adjusted earnings per share within the first 12 months post-closure, aligning with the company’s return on invested capital objectives. The completion of the acquisition is expected in the second half of 2024, pending customary closing conditions and regulatory approvals.