BUZZ-Tradeweb hits over 6-month high on about $2 billion Trumid deal

October 20 - ** Tradeweb Markets (TW.O) shares rose for the fifth consecutive trading day, closing up 3.1% at $118.26 on Tuesday, after the company announced it would acquire bond trading platform Trumid for about $1.97 billion.

** TW shares rose as much as 3.6% to $118.81, marking the highest level since April 17.

** The transaction (link) is expected to be completed in the first half of 2027, aiming to expand TW's influence in the U.S. corporate bond market and expected to boost adjusted earnings per share in the first full fiscal year after completion.

** Trumid, backed by venture capitalist Peter Thiel and investor George Soros, operates a USD-denominated electronic trading platform for corporate bonds, covering investment grade bonds, high-yield bonds, distressed bonds, and emerging market bonds.

** TD Cowen, which rates TW as “Hold”, noted in a research report that the acquisition of Trumid will create a stronger competitor to the forthcoming (link) ICE ICE.N/MarketAxess MKTX.O platform, adding that the deal should also expand TW's client base, especially among market makers and hedge fund/quantitative trading firms, while providing ample cross-selling opportunities.

** TW's market capitalization is about $25 billion, up about 10% so far this year, underperforming the Nasdaq .IXIC index's nearly 14% gain.

** According to data from London Stock Exchange Group (LSEG), out of 17 analysts, 10 rate the stock a “Strong Buy” or “Buy”, while 7 rate it a “Hold”; the median target price is $122.39.

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