Internet bond trading firm BondDesk has acquired the BondNexus new issue platform. Terms of the transaction have not been disclosed.
BondNexus began life five years ago as a proprietary software application within Seattle-NorthWest Securities where it was used to automate the underwriting of municipal bonds. The company was spun off as a commercial entity in September 2000 and the platform now features a suite of products that assist underwriters, salespeople, and bankers in managing a municipal bond underwriting. It claims to have handled over 300 issues with a value of $3 billion in the first three quarters of 2001.
BondDesk, which is owned by a consortium of 12 financial services firms, says BondNexus will complement its taxable new issue platform, which is currently handling $1 billion in new issues per month. BondNexus will change its name to BondDesk*Syndicate and be integrated into BondDesk.
The agreement is the latest in a series of closures, mergers and takeovers to hit the rapidly consolidating electronic bond trading market.