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FT Partners Advises MarketAxess in its Sale of a Minority Stake for $35 Million

Overview of Transaction
  • On June 3, 2008, MarketAxess announced the sale of a minority stake for approximately $35 million to Technology Crossover Ventures (TCV) and also adopted a comprehensive shareholder rights plan ("poison pill") with a 20% trigger
  • The TCV investment consists of a mix of Series B Preferred Stock and warrants to purchase shares of the company's common stock; contains a 1 year lockup, a 7 year standstill provision and an automatic conversion to common
Significance of Transaction
  • $35 million investment at $10.00 per share represents a ~34% premium over the closing stock price on June 2, 2008
  • Adoption of a comprehensive shareholder rights plan protects the company from unsolicited or coercive takeover attempts
FT Partners' Role
  • FT Partners served as exclusive strategic and financial advisor to MarketAxess and its Board of Directors on the $35 million private investment and the shareholder rights plan
  • FT Partners designed the transaction structure and negotiated the per share price and warrant structure