MarketAxess operates one of the leading platforms for the electronic trading of corporate bonds and certain other types of fixed-income securities

What Company Is Offering:
MarketAxess operates one of the leading platforms for the electronic trading of corporate bonds and certain other types of fixed-income securities, serving as an electronic platform through which our more than 670 active institutional investor clients can access the liquidity provided by our 30 broker-dealer clients. MarketAxess' multi-dealer trading platform allows our institutional investor clients to simultaneously request competitive, executable bids or offers from multiple broker-dealers, and to execute trades with the broker-dealer of their choice. MarketAxess offers our clients the ability to trade U.S. high-grade corporate bonds, European high-grade corporate bonds, credit default swaps, agencies, high-yield and emerging markets bonds. MarketAxess also provides data and analytical tools that help our clients make trading decisions, and we provide connectivity solutions that facilitate the trading process by electronically communicating order information between trading counterparties and we provide our clients with ancillary technology services.

How Much They Got From VCs:
MarketAxess Holdings Inc. (MKTX), the operator of a leading electronic trading platform for U.S. and European high-grade corporate bonds, emerging markets bonds and other types of fixed-income securities, today announced that Technology Crossover Ventures ("TCV"), a leading private equity and venture capital firm with expertise in the financial technology space, has agreed to purchase a minority stake in MarketAxess, consisting of preferred stock and warrants, for an aggregate purchase price of $35.0 million. The preferred shares being sold by MarketAxess are convertible by TCV into shares of MarketAxess common stock at a conversion price of $10.00 per share, representing a premium of approximately 34% to the closing price of MarketAxess common stock on June 2, 2008.

Under the terms of the agreement, TCV will acquire (i) 35,000 shares of Series B preferred stock, which are convertible into 3.5 million shares of MarketAxess common stock at a conversion price of $10.00 per share, and (ii) ten-year warrants to purchase an additional 700,000 shares of common stock at an exercise price of $10.00 per share. After the closing of the transaction, TCV will own approximately 10% of MarketAxess' common stock on a fully-diluted basis. The terms of the investment include a seven year standstill, a one year lock-up and an automatic conversion provision. The preferred shares also include the right to elect one member of MarketAxess' Board of Directors.

"We are pleased to join forces with TCV to expand and execute our growth agenda," commented Richard M. McVey, chairman and chief executive officer of MarketAxess. "The TCV investment reflects confidence in our business model and our market position. This additional capital will allow us to invest in broadening our capabilities while actively managing our balance sheet to build stockholder value. TCV has a long history of success in the financial technology space and we will benefit from their expertise as well as their industry relationships."

More at:http://www.marketaxess.com/