Tradeweb to acquire wealthtech ICD in $785m deal

Tradeweb has agreed to purchase Institutional Cash Distributors for $785 million with the deal expected to close in the second half of 2024

Operating as an institutional money market fund portal, Institutional Cash Distributors (ICD) provides investment technology for corporate treasury organisations trading short-term investments and sported a daily balance average of more than $230bn in 2023.

The all-cash deal, which remains subject to regulatory review, will see Tradeweb envelop both ICD’s portal, which facilitates insight into and trading with around 40 short-term investment providers. It will also take its accompanying AI-driven portfolio analytics solution, which aggregates positions across corporate treasury portfolios for analysis and reporting.

In the first year after acquiring ICD, the electronic marketplaces operator expects its adjusted earnings per share to be accretive as its addressable market expands by over $2bn.

Moreover, the New York-headquartered firm states that it intends to accelerate ICD’s growth and expansion by utilising its global reach and providing money market funds to its own established client base.

Tradeweb chief executive officer Billy Hult 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. We look forward to welcoming the talented ICD team onboard, who share Tradeweb’s unwavering commitment to delivering innovative products and extraordinary service, and to jointly creating even greater value for our clients and shareholders.”

Following the completion of the transaction, ICD chief executive officer Tory Hazard, will report to Tradeweb president, Thomas Pluta, as the newest member of the firm’s operating committee.

About the deal, Hazard said: “We could not have found a better partner than Tradeweb to continue providing innovative technology and exceptional service to our clients. 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.”

Image: Tradeweb

Robert Welbourn Robert Welbourn is an experienced financial writer. He has worked for a number of high street banks and trading platforms. He's also a published author and freelance writer and editor.