Tradeweb to Acquire Trumid for $1.97bn

Tradeweb Markets Inc. (NASDAQ:TW) has agreed to acquire Trumid Holdings, LLC, a financial technology company and electronic credit trading marketplace, for approximately $1.97 billion, subject to customary adjustments. The purchase price comprises $1.75 billion for the business and about $220 million for tax assets being acquired.

The transaction consideration will consist of approximately $1.89 billion in cash, subject to customary adjustments, and $82 million in equity. Tradeweb expects to fund the cash portion primarily through cash on hand.

The boards of both companies have unanimously approved the deal, which is subject to customary closing conditions, including regulatory approvals. The acquisition is targeted to close in the first half of 2027.

Tradeweb said the combined credit trading products will expand its multi-asset class platform into earlier stages of the bond lifecycle, from trade inception to the secondary market, creating a new capability for the industry. The two platforms have complementary trading protocols developed through collaboration with the dealer community.

Tradeweb CEO Lee Olesky said the acquisition supports the company's ambition to make credit markets more efficient and provide clients with smarter ways to access liquidity. He added that U.S. credit represents a significant long-term growth opportunity as the market embraces electronic execution and clients seek more sophisticated solutions to navigate liquidity. Trumid, he said, has built an innovative platform well positioned for where the market is headed, and bringing the capabilities together under Tradeweb can accelerate innovation and broaden client solutions.

Mike Sobel, Co-CEO and President of Trumid, said the company looks forward to incorporating its innovative protocols, agile technology, and collaborative client-centric approach into Tradeweb's global footprint and client network. He noted that both teams share a focus on technology and client experience, and that the combination will aim to deliver a stronger trading experience for buy- and sell-side clients globally.

Morgan Stanley & Co. LLC is acting as exclusive financial advisor to Tradeweb, while Goldman Sachs & Co. LLC is exclusive financial advisor to Trumid. Legal advisors are Fried, Frank, Harris, Shriver & Jacobson LLP and Simpson Thacher & Bartlett LLP for Tradeweb, and Latham & Watkins LLP for Trumid.