Tradeweb Markets is set to acquire Institutional Cash Distributors (ICD) for $785 million having entered into a definitive agreement.
Billy Hult
The purchase price for the acquisition of ICD – an institutional investment technology provider for corporate treasury organisations trading short-term investments – is expected to be funded with cash on hand and close in H2 2024 subject to customary adjustments and a regulatory review.
Billy Hult, chief executive of Tradeweb, said: “ICD is an exceptional opportunity to acquire a leading investment platform for corporate treasurers, a fast-growing channel within fixed income markets and a strong strategic fit for Tradeweb.
“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 also be positioned to drive the adoption of electronic trading for corporate treasurers.”
ICD – one of the US’ largest institutional money market fund portals – currently provides its services to more than 500 corporate treasury organisations from growth and blue-chip companies across 65 industries and over 45 countries, allowing customers to invest in money market funds and other short-term products to manage liquidity.
Following acquisition by Tradeweb, ICD is set to provide a comprehensive solution for corporate treasurers and asset managers worldwide “to manage short-term liquidity needs and FX risk, as well as optimise yield and duration via Tradeweb’s existing suite of products”.
ICD’s products include ICD Portal and ICD Portfolio Analytics. The former is a one-stop shop for researching, trading, analysing, and reporting on investments, while the latter is an AI-driven cloud solution which is used to aggregate positions across a corporate treasury’s portfolio for analysis and reporting.
Tory Hazard, chief executive of ICD, said: “This acquisition will enable ICD clients to have integrated access to Tradeweb’s fixed income marketplace, while continuing to trade through our existing technology.
“The combined offering delivers even more of what corporate treasury wants, and together, we will be able to unlock the full potential of our technology.”
Following close of the transaction, Hazard will report to Tradeweb president Thomas Pluta and join Tradeweb’s Operating Committee.