Tradeweb Targets Yieldbroker Acquisition

Tradeweb Markets has released a statement confirming it is in “advanced discussions” to acquire Australian e-Rates platform Yieldbroker in a deal estimated to be worth 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,” Tradeweb says in the statement. “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.

“Australia is home to the 5th largest pension fund market globally, and we believe that this acquisition would help grow Tradeweb’s Asia Pacific footprint and provide meaningful opportunities for domestic and global clients,” it adds.

The deal remains subject to Yieldbroker shareholder approval, however the firm’s board has given the deal unanimous approval. Yieldbroker was formed in 2001 and counts ANZ, CBA, Citi, Deutsche, JP Morgan, Macquarie, NAB, RBC, TD, UBS and Westpac as its shareholder – in 2014, Australian exchange ASX bought 49% of the business.