Tradeweb Markets (TW) M&A announcement summary

Deal rationale and strategic fit

• Trumid extends credit coverage from grey markets and new issuance through secondary trading across a bond’s lifecycle.

• Swarms, Attributed Trading, dealer RFQ and AllTrade complement existing protocols, workflows and client segments.

• Trumid adds dealer, hedge-fund and wholesale relationships, broadening access to liquidity across institutional and systematic participants.

• Acquiring scaled capabilities accelerates execution versus building internally and frees resources for emerging markets, algorithmic trading and block trading.

Financial terms and conditions

• Total purchase price is ~$1.97B: $1.75B for the business and ~$220M for tax assets; the net business price equals 19.4x fully synergized 2026 adjusted EBITDA.

• Consideration comprises $1.888B cash and $82M equity; incoming management rolls most equity consideration, subject to a lockup expiring 2.5 years after closing.

• Trumid revenue grew at ~30% CAGR from 2022–2025; 2026 revenue is tracking at ~$150M and adjusted EBITDA margin at ~20%.

• Underwriting assumes 10% annual revenue growth, ~400 bps annual standalone adjusted EBITDA margin expansion and $65M in foregone annual net interest income; adjusted EPS accretion is expected in the first full year post-close.

• Tax assets have ~$220M present value and are expected to generate ~$345M in cash tax savings over time, with 40% of gross value expected within five years.

Synergies and expected cost savings

• Expected run-rate expense synergies total $60M annually, with 70% targeted in the first full year after closing and 95% in year two.

• Savings primarily come from combining technology, product, sales and corporate functions and consolidating vendor, clearing, data and professional-services contracts.

• Overlapping RFQ and portfolio-trading workflows will be combined; differentiated Swarms and Attributed Trading remain available to a broader client network.