TRADEWEB MARKETS Acquires Yieldbroker in All-Cash Deal
June 21, 2023
🌥️Trending News
TRADEWEB MARKETS ($NASDAQ:TW), Inc. has announced that it has reached an agreement to acquire Yieldbroker, an Australian-based financial technology company, in an all-cash transaction. This acquisition is expected to expand TRADEWEB MARKETS’ presence in the fixed-income and derivatives markets in the Asia-Pacific region. TRADEWEB MARKETS is a leading fixed-income and derivatives technology provider with a focus on global markets. It operates a multi-asset marketplace that provides institutional clients with access to anonymous electronic trading and post-trade services for fixed income, derivatives and ETFs. The platform offers institutional investors the ability to execute transactions electronically, saving them time and money.
The acquisition of Yieldbroker will add to those already existing capabilities by enhancing the current offering while providing customers with a more comprehensive suite of products and services. Yieldbroker’s technology platform offers efficient access to markets for fixed income and derivatives, as well as a clearing service for the Australian market. This deal will further strengthen TRADEWEB MARKETS’ position in the global fixed-income and derivatives markets. The company is committed to continuing its growth trajectory and will continue to invest in technology and strategic partnerships that support its mission of becoming the leading global multi-asset electronic trading platform.
Share Price
On Thursday, TRADEWEB MARKETS announced that it has acquired Yieldbroker in an all-cash deal. The news caused TRADEWEB MARKETS stock to open at $69.9 and close at $68.5, down by 1.9% from last closing price of 69.8. The two major players in the electronic trading and asset-backed securities markets are now united, with TRADEWEB MARKETS taking a majority stake in Yieldbroker. This acquisition solidifies TRADEWEB MARKETS’ position as a leader in providing liquidity, technology, and data solutions to the fixed income market. It also allows Yieldbroker to expand its presence beyond Australia and New Zealand, as it enters new markets and grows its customer base. The transaction is expected to be completed by the end of this year, pending regulatory approval. The exact terms of the deal have not been disclosed.
However, both companies are confident that the combination of their resources and platforms will lead to improved financial results and more efficient services. Overall, the acquisition of Yieldbroker by TRADEWEB MARKETS is expected to be a positive move for both companies, as they continue to strengthen their presence in the fixed income markets. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Tradeweb Markets. More…
| Total Revenues | Net Income | Net Margin |
| 1.21k | 314.13 | 26.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Tradeweb Markets. More…
| Operations | Investing | Financing |
| 658.42 | -58.77 | -189.08 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Tradeweb Markets. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.24k | 639.2 | 24.06 |
Key Ratios Snapshot
Some of the financial key ratios for Tradeweb Markets are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 13.6% | 19.8% | 36.2% |
| FCF Margin | ROE | ROA |
| 49.7% | 5.5% | 4.4% |
Analysis
GoodWhale has conducted an extensive analysis of TRADEWEB MARKETS‘ fundamentals and found that its star chart is strong in asset and growth, and medium in dividend and profitability. The company’s health score is a commendable 10/10, indicating it has strong cashflows and manageable debt. This means it is capable of paying off debt and funding future operations. Furthermore, TRADEWEB MARKETS’ stability and consistent growth have led us to classify it as a ‘gorilla’ – a company that has created strong competitive advantages that have enabled it to achieve high and stable revenue or earnings growth. As such, we believe that TRADEWEB MARKETS would be an attractive prospect for long-term investors looking for a stable company with a strong competitive advantage. More…
Peers
It is one of the four major electronic trading firms that dominate the global electronic trading landscape, alongside MarketAxess Holdings Inc, Global Brokerage Inc, and Gogia Capital Services Ltd. All four companies provide innovative solutions to facilitate efficient price discovery and execution for a wide range of market participants.
– MarketAxess Holdings Inc ($NASDAQ:MKTX)
Axess Holdings Inc is a leading provider of electronic trading and market data services to the global fixed income markets. It operates the largest electronic trading platform for fixed income securities in the United States, providing access to a wide range of institutional investors and dealers. As of 2022, Axess’s market capitalization stands at 10.57 billion dollars, making it one of the leaders in the fixed income space. Its impressive return on equity (ROE) of 20.5% reflects its strong performance in recent years and its potential for future growth. The company has invested heavily in developing its technology infrastructure and expanding its product offerings, allowing it to capture a larger share of the global fixed income market.
– Global Brokerage Inc ($OTCPK:GLBR)
Global Brokerage Inc is an international financial services company that specializes in providing a range of brokerage and investment services. The company has a market capitalization of 137,000 as of 2022, which is a measure of the company’s size and value. Return on Equity (ROE) is a measure of profitability which shows how much profit the company is able to generate from its shareholders’ investments. Global Brokerage Inc has a ROE of -19.36%, which means that it is not generating any profits from its shareholders’ investments. This suggests that the company is not performing well and has potential problems that need to be addressed.
– Gogia Capital Services Ltd ($BSE:531600)
Gogia Capital Services Ltd is a diversified financial services company based in India. The company offers a range of services, including Investment Banking, Corporate Finance, Mergers and Acquisitions, Broking Services, securities issuance and advisory services. As of 2022, the company has a market capitalization of 790.14M and a Return on Equity (ROE) of 6.0%. This indicates that the company is generating an adequate return on its equity investments and has a strong financial position. Furthermore, Gogia Capital Services Ltd is well-positioned to capitalize on growth opportunities in the future.
Summary
Tradeweb Markets is an electronic trading platform for fixed-income securities, derivatives, and other instruments. The company recently agreed to acquire Yieldbroker, an Australian-based electronic trading venue for fixed-income products and derivatives, in an all-cash deal. This acquisition is expected to strengthen Tradeweb’s ability to serve global fixed-income markets, increase the company’s product offering and expand its global distribution network. From an investment analysis perspective, the acquisition should help Tradeweb maintain its competitive edge in the fixed income market and gain greater market share.
It is also expected to benefit the company’s financial performance in terms of increased revenue and profitability in the long run. Finally, the acquisition will likely result in improved customer service and greater operational efficiency.
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