Fixed income marketplace Tradeweb is in talks to acquire Australian government bond and interest rate derivatives trading platform Yieldbroker.
The consideration for the sale is A$125m, on a cash-free, debt-free basis. The proposed transaction has been unanimously approved by the Yieldbroker board.
ASX owns approximately 43% of Yieldbroker. The remaining shares are owned by a number of domestic and international banks and current and former Yieldbroker employees.
In a statement confirming the talks, Tradeweb says: "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. 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."