Fixed income marketplace Tradeweb is in discussions to acquire Yieldbroker, an Australian government bond and interest rate derivatives trading platform.
The proposed sale is valued at A$125 million on a cash-free, debt-free basis and has received unanimous approval from Yieldbroker’s board. ASX owns approximately 43% of Yieldbroker, with the remaining shares held by various domestic and international banks, as well as current and former employees.
In a statement regarding the negotiations, Tradeweb expressed that the acquisition would combine both companies’ innovative trading solutions and extensive industry expertise, aiming to enhance liquidity, transparency, and efficiency in fixed income markets. This deal would offer Yieldbroker’s domestic clients, including superannuation funds, access to Tradeweb’s global multi-asset platform, while Tradeweb’s global customers would gain increased liquidity and pre-trade transparency, along with better coverage of the Australian and New Zealand debt capital markets.
With Australia housing the fifth-largest pension fund market globally, Tradeweb believes this acquisition would significantly expand its presence in the Asia Pacific region and create substantial opportunities for both domestic and international clients.