01:01 PM EDT, 04/08/2024 (MT Newswires) -- Tradeweb Markets ( TW ) said Monday that it agreed to buy Institutional Cash Distributors for $785 million, expanding into a new client channel serving corporate treasury professionals.

The transaction is expected to close in the second half of 2024, pending regulatory clearance. Tradeweb will fund the deal using cash on hand. The ICD Portal is a platform for trading money market funds and other short-term investments.

"(Institutional Cash Distributors) 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," Tradeweb CEO Billy Hult said in a statement. "Acquiring (Institutional Cash Distributors) will further diversify our client and business mix, advancing our track record of expanding into adjacent markets to improve client workflows."

The deal complements Tradeweb's existing focus on institutional, wholesale and retail clients. Institutional Cash Distributors has more than 500 corporate treasury clients reflecting 17% of the S&P 100 as of Dec. 31, across 65 industries.

Once completed, Institutional Cash Distributors Chief Executive Tory Hazard will report to Tradeweb President Thomas Pluta. The acquisition is expected to be accretive to Tradeweb's adjusted earnings per share in the first 12 months following close.

"This acquisition will enable ICD clients to have integrated access to Tradeweb's fixed income marketplace, while continuing to trade through our existing technology," Hazard said.

As one of the largest US institutional money market fund portals with average daily balances of more than $230 billion in 2023, Institutional Cash Distributors will be positioned as part of Tradeweb to drive adoption of electronic trading for corporate treasurers, Hult said.

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