Stocks
Tradeweb agrees to buy bond-trading platform Trumid for $1.97 billion
The mostly cash deal pushes Tradeweb deeper into electronic corporate credit trading.
HedgeWeekly News Desk ·
Tradeweb Markets said on Monday it will acquire Trumid, an electronic trading marketplace for US dollar corporate bonds, for about $1.97 billion. The price splits into $1.75 billion for the business and about $220 million for Trumid's tax assets, valued on a net present value basis at a 7% discount rate.
Tradeweb will pay about $1.89 billion in cash, drawn mainly from cash on hand, plus $82 million in equity. Both boards have approved the deal, which is expected to close in the first half of 2027 subject to regulatory approvals. Tradeweb expects the purchase to lift adjusted earnings per share within the first full year after closing, with the benefit growing as cost savings are realized.
Trumid handles trading in investment-grade, high-yield, distressed and emerging-market bonds. Tradeweb said the deal extends its reach into earlier stages of a bond's life, including grey-market and new-issue trading, and combines Trumid's trading protocols with its own dealer and buy-side network.
Tradeweb shares rose 3.7% in after-hours trading on Monday, according to GuruFocus. Management will discuss the transaction on a call at 8:30 a.m. ET on Tuesday. Morgan Stanley advised Tradeweb and Goldman Sachs advised Trumid.