Tradeweb Markets Inc. recently confirmed plans to acquire Yieldbroker, an Australian government bond and interest rate derivatives trading platform, a Business Wire press release said this week.
The news is confirmed as Tradeweb continues advanced discussions to acquire Yieldbroker, which covers the institutional, wholesale and primary markets. The company projects the acquisition to be an all-cash transaction valued at the 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,” the release said. “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.”
The global operator of electronic marketplaces for rates, credit, equities and money markets was initially attracted to Australia’s ranking as the 5th largest pension fund market.
“We believe that this acquisition would help grow Tradeweb’s Asia Pacific footprint and provide meaningful opportunities for domestic and global clients,” the company said in the release.
Tradeweb has not confirmed whether a definitive agreement will be set in stone or developed into a transaction that will be consummated.
Subject to customary closing conditions and regulatory review terms, the deal will be determined by Yieldbroker’s stockholder approval and set in final definitive documentation.
Tradeweb serves more than 40 clients in the institutional, wholesale and retail markets, providing access to markets, data and analytics, electronic trading, straight-through-processing and reporting. Its general services help more than 2,500 clients across 65 countries.
“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,” the release said.