Tradeweb Acquires Yieldbroker for AUD 125M in Cash

Tradeweb Markets Inc. has entered into a definitive agreement to acquire Yieldbroker, a consortium-built infrastructure jointly owned by banks active in local fixed-income trading and the Australian Securities Exchange (ASX).

Yieldbroker is the primary trading platform in Australia for government bonds and interest rate derivatives, catering to institutional, wholesale, and primary segments.

The agreement follows Tradeweb's recent announcement of an all-cash transaction offer of AUD 125 million, which was accepted by the consortium. The completion of the transaction is expected later this year, subject to customary closing conditions and regulatory reviews.

Billy Hult, President of Tradeweb, expressed enthusiasm about the opportunity to better serve participants in the fast-growing fixed-income market. He emphasized Tradeweb's alignment with Yieldbroker's dedication to client collaboration and continuous innovation, enabling them to provide significant value to Australian and New Zealand bond and derivatives customers. Hult also highlighted the enhanced offering resulting from the collaboration, providing clients with a seamless experience and increased engagement in international markets.

Anthony Robson, Chief Executive Officer at Yieldbroker, expressed satisfaction with joining forces with Tradeweb. He emphasized using combined resources and expertise to enhance the trading experience for customers. Robson highlighted Yieldbroker's strong reputation, liquidity, and coverage in the domestic Australian and New Zealand fixed-income markets. He looked forward to the next chapter for the company and its clients as part of Tradeweb.

The acquisition aligns with Tradeweb's mission to improve market efficiency. Australian institutions, including superannuation funds, will benefit from enhanced access to Tradeweb's liquid, global, multi-asset platform. Additionally, Tradeweb's international client base will gain seamless access to Yieldbroker's Australian and New Zealand bond and derivative marketplaces and reliable pre-trade pricing data.

Tradeweb, founded in 1996, is a global operator of electronic marketplaces for rates, credit, equities, and money markets. The company provides clients in institutional, wholesale, and retail markets with access to markets, data and analytics, electronic trading, straight-through-processing, and reporting for over 40 products.

ASX holds approximately 43% ownership of Yieldbroker, with the remaining shares held by domestic and international banks and current and former Yieldbroker employees. ASX anticipates a realization of approximately A$55 million (after estimated transaction costs) and a reversal of prior year impairment losses of around A$25 million after tax for the financial year ending 30 June 2023. ASX will retain the proceeds from the sale to support ongoing business operations.

Helen Lofthouse, ASX's Managing Director and CEO, believed in the substantial benefits this transaction would bring to the Australian market. She highlighted the potential for Yieldbroker and Tradeweb to leverage each other's innovative trading solutions and industry expertise. As a shareholder of Yieldbroker since 2014, ASX committed to working closely with Tradeweb as the new owner to foster long-term growth and solutions for customers in the Australian fixed-income market.