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Tradeweb agrees to buy Trumid for about $1.97 billion

The $1.75 billion for the business is about 58 times Trumid’s adjusted earnings before interest, taxes, depreciation and amortization, while Tradeweb’s own figure is 19.4 times only once $60 million a year of cost cuts are fully counted.

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Key takeaways

  • Tradeweb Markets agreed to buy electronic credit marketplace Trumid for about $1.97 billion.
  • The $1.75 billion paid for the business is about 58 times Trumid's adjusted EBITDA.
  • Tradeweb's lower 19.4 times multiple only holds once $60 million of yearly cost cuts are fully counted.
  • Tradeweb plans to pay the cash mainly from its own reserves of $2.1 billion.
  • The deal equals about 8% of Tradeweb's stock-market value and should close in early 2027.

Tradeweb Markets agreed Monday to buy Trumid, an electronic credit marketplace, for about $1.97 billion.

Of that, $1.75 billion is for the business and about $220 million is for tax assets. About $1.89 billion of the price is cash, subject to customary adjustments, and $82 million is equity in Tradeweb going to some Trumid holders.

Tradeweb annualized Trumid’s first nine months of 2026 and put revenue at about $150 million. On adjusted earnings before interest, taxes, depreciation and amortization, it put the standalone margin at about 20%. That comes to about $30 million.

The $1.75 billion for the business is about 58 times that. Tradeweb’s 19.4 times figure is the same price only once $60 million a year of cost cuts are fully counted.

Tradeweb expects 70% of those cuts in the first year and 95% by the second. It said the deal should add to adjusted earnings per share in the first full year after closing, with a larger lift later as the savings arrive.

Its presentation assumes Trumid’s revenue grows 10% a year, and that the standalone margin improves by about 4 percentage points a year separate from the cost cuts. It also assumes Tradeweb gives up $65 million a year of interest income on the cash.

Tradeweb expects to fund the cash mainly from money it already has. It reported $2.1 billion in cash and equivalents as of June 30.

At Monday’s close of $114.70, Tradeweb had a stock-market value of $24.8 billion, so the deal is about 8% of it.

Trumid’s platform handles U.S. dollar investment-grade, high-yield, distressed and emerging-market bonds.

Tradeweb, which says it facilitates more than $3 trillion of trading a day, said the purchase extends it into earlier stages of a bond’s life.

Both boards approved the agreement unanimously. Tradeweb is targeting a close in the first half of 2027, subject to regulatory approvals and other customary conditions. It scheduled an investor call for 8:30 a.m. ET Tuesday.

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Frequently asked questions

How is the roughly $1.97 billion price split?

About $1.75 billion is for the business and about $220 million is for tax assets, with about $1.89 billion paid in cash and $82 million in Tradeweb equity.

How big is Trumid's business?

Tradeweb put Trumid's annualized revenue at about $150 million, with a standalone adjusted EBITDA margin of about 20%, or roughly $30 million.

When does Tradeweb expect the deal to add to earnings?

Tradeweb said the deal should add to adjusted earnings per share in the first full year after closing, with a larger lift later as the cost savings come through.

When is the deal expected to close?

Tradeweb is aiming to close in the first half of 2027, subject to regulatory approvals and other customary conditions.

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