In other news, Tradeweb may buy Yieldbroker, TS Imagine links to Crypto Finance & AFX has a new president.
Acquisition Helps Deutsche Bank’s Global Strategy
Deutsche Bank reports that it has agreed to an all-cash offer of $511 million for the acquisition of London-based corporate broking and advisory firm Numis Corp., and that the transaction will allow the German banking giant to advance its Global Hausbank strategy.
Numis provides strategic advice and capital market connectivity to “166 retained corporate broking clients, including 64 clients in the FTSE 350, representing almost 20 percent of the index,” according to Deutsche Bank.
The acquisition will accelerate the Global Hausbank strategy “by unlocking a much deeper engagement with the corporate client segment in the U.K., enabling Deutsche Bank to become a leading provider to more than 170 corporate clients for their comprehensive financial and advisory needs,” bank officials say.
Deutsche Bank’s management board and Numis’s board say the acquisition is “an exciting strategic opportunity to combine Deutsche Bank’s existing U.K. and Ireland corporate finance business with Numis to establish a leading force in U.K. investment banking,” according to Deutsche Bank. The combined business group will have “a prominent position across corporate broking, strategic advisory (including M&A and growth capital), equity and debt capital markets and equity research, sales and execution.”
The combined entity will help the bank leverage its “comprehensive and global product offering across the corporate bank and the international private bank,” according to Deutsche Bank.
“Under the terms of the transaction, Numis shareholders will be entitled to receive a total of 350 pence per share, valuing Numis at approximately £410 million ($511.5 million). The board of Numis intends to recommend the transaction unanimously to Numis shareholders. Deutsche Bank has received an irrevocable undertaking from Numis’ largest shareholder to vote in favor of the transaction,” according to Deutsche Bank. “The transaction is expected to complete during the fourth quarter of 2023, subject to certain conditions including approval by Numis shareholders and receipt of regulatory approvals.”
Tradeweb in Talks to Buy Yieldbroker for $83 Million
Tradeweb Markets Inc. reports that it is in talks to acquire an Australian government bond and interest rate derivatives trading platform known as Yieldbroker for an estimated $83.2 million.
“Tradeweb is in advanced discussions to acquire Yieldbroker, a leading Australian government bond and interest rate derivatives trading platform covering the institutional, wholesale, and primary markets. Tradeweb anticipates that the acquisition would be an all-cash transaction with a purchase price of AUD 125 million,” according to a statement posted on its website.
The acquisition “would leverage both firms’ innovative trading solutions and deep industry experience to create more liquid, transparent and efficient fixed income markets,” according to the TradeWeb statement. “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.”
In addition, Tradeweb clients around the world “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,” according to the statement.
“Tradeweb can offer no assurance that a definitive agreement will be entered into, or if entered into that a transaction will be consummated. The potential deal remains subject to Yieldbroker stockholder approval, final definitive documentation, and would be subject to customary closing conditions and regulatory reviews,” according to Tradeweb officials.
Tradeweb operates electronic marketplaces for rates, credit, equities, and money markets
TS Imagine Links to Prime Broker for Digital Assets
TS Imagine reports that its clients will now be able to access the digital asset trading infrastructure and cryptocurrency market coverage of prime broker Crypto Finance Group, based in Zurich, as the result of a new partnership.
Part of Deutsche Börse Group, Crypto Finance Group offers digital asset solutions such as brokerage services, custody, infrastructure, and tokenization support for financial institutions, officials say.
“It also comprises the first FINMA-approved manager of collective assets for crypto assets, with a selection of crypto investment solutions, including the first FINMA-regulated crypto fund,” according to Crypto Finance Group. TS Imagine offers cross-asset trading, portfolio, and risk management solutions.
“As more sophisticated investors and their teams continue to seek exposure to cryptocurrencies, we are proud to offer a deep, liquid connection network to this exciting and emerging asset class,” says Alexandre Carteau, head of corporate development and digital assets at TS Imagine, in a prepared statement.
7RIDGE Shuffles Execs at American Financial Exchange
John Shay
Veteran financial services executive John Shay is the next CEO of American Financial Exchange (AFX), an electronic exchange for direct lending and borrowing for American banks and financial institutions, officials say.
The executive shuffle follows the 100 percent acquisition of AFX by specialized growth equity firm 7RIDGE, which invests in transformative technologies for financial services, officials say.
Shay has helped launched “industry consortium-based firms – composed of and serving major buy-side, sell-side, and exchange participants – along with extensive experience in banking and deposits, over-the-counter (OTC) and exchange-traded derivatives markets, clearing and brokerage,” according to the announcement.
Shay also founded and served as managing partner of Capital Market Services Inc., (CMSI), a clearing and execution services business designed to improve market access for non-bank participants in the OTC and exchange-traded space, officials say.
At Acadia (formerly AcadiaSoft), he was chairman of the post-trade services provider for the non-cleared derivatives community from 2019 until it was acquired by the London Stock Exchange Group (LSEG), officials say.
He has been part of global market-making firm Virtu Financial since 2007, and he most recently served as senior advisor to the CEO, officials say. He also co-founded IDCG, “the market’s first OTC interest rate Designated Clearing Organization (DCO), sold in 2012 to the London Clearing House (LCH) and then LSEG,” officials say.
He also served as global head of fixed income and commodities at Nasdaq, executive chairman at TruSight Solutions LLC and senior advisor at Broadway Technology following a 25-year career at ICAP, a major voice and electronic interdealer broker in the OTC space, officials say.
Dr. Richard L. Sandor, the founder and chairman emeritus of AFX, will remain and serve in an advisory capacity to the exchange, officials add.
Launched in 2015, AFX is a self-regulated exchange with more than 240 bank and non-bank members across the United States, officials say. “AFX also facilitates the determination of a market-based interest rate benchmark called the American Interbank Offered Rate (AMERIBOR).
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