Intercontinental Exchange Inc. has begun the sale of U.S. investment-grade bonds, aiming to raise approximately $3.5 billion to finance its acquisition of MarketAxess Holdings Inc.
ICE announced its intent to acquire MarketAxess for approximately $6 billion two weeks before the bond sale. The transaction is structured as a cash-and-stock deal.
MarketAxess, founded in 2000, processes roughly 25 percent of all U.S. investment-grade and high-yield bond trades through its Open Trading system, which routes orders anonymously among institutional investors. The platform generated projected annual revenue of $800 million, expanding ICE's exposure to fixed-income electronification—the ongoing shift from phone-based trading to electronic execution.
ICE already operates a fixed-income data and analytics business through its ICE Data Services unit, which provides pricing and reference data for bond instruments. The MarketAxess acquisition connects that data capability directly to a live trading execution venue, creating a vertically integrated offering for bond market participants.
The deal also reshapes ICE's revenue mix. The company reported $7.5 billion in revenue during 2024, with roughly 60 percent originating from its exchanges and clearing houses. Adding MarketAxess reduces ICE's reliance on equity and derivatives trading, which has faced margin pressure from competitors and regulatory changes.
Chris Concannon, MarketAxess chief executive officer, will lead the combined fixed-income business at ICE. Concannon said the deal "accelerates our mission to make bond markets more efficient, transparent and accessible."
Jeffrey Sprecher, ICE chief executive officer, said the acquisition "creates a unique opportunity to deliver innovative trading solutions across asset classes."
The transaction is expected to close in the second half of 2025, pending regulatory approvals and a MarketAxess shareholder vote. Antitrust scrutiny is anticipated given the combination of a major exchange operator with a leading electronic bond trading platform. Competitors including Bloomberg and Tradeweb will face pressure to adapt their offerings in response.
