Nasdaq deepens fintech push with US$10.5B Adenza deal
Nasdaq on Monday mentioned it would purchase Thoma Bravo-owned software program agency Adenza for US$10.5 billion, in what can be the alternate operator’s largest acquisition because it hurries up its push to develop into a extra tech-focused firm.
Shares of Nasdaq prolonged losses to commerce down 8.4% at $53 earlier than the bell.
The buy, consisting of $5.75 billion in money and 85.6 million shares of Nasdaq frequent inventory, is anticipated to assist development on the inventory alternate operator, which is attempting to diversify below Chief Executive Officer Adena Friedman.
“With Adenza, we will have a more complete suite of essential software and technology solutions that make managing risks and complying with regulations simpler and more efficient for our clients,” Tal Cohen, president of Market Platforms at Nasdaq mentioned in a press release.
Nasdaq has diversified extra into companies much less affected by market fluctuations, corresponding to anti-financial crime software program and ESG companies below Friedman, with recurring income from non-market items making up roughly three-quarters of the whole.
The deal for Adenza comes after a yr of capital markets volatility, which took the steam out listings within the U.S., stemming profitable itemizing charges for its exchanges after a document 2021.
Nasdaq mentioned shopping for Adenza is anticipated to extend the medium-term natural income development outlook for its Solutions Businesses, which designs and develops monetary software program for buyers, from 7%-10% to eight%-11%.
It intends to difficulty about 14.5% of its excellent shares to the house owners of Adenza, which is managed by Thoma Bravo.
Adenza, which makes software program utilized by banks and brokerages, is anticipated to hit about $590 million in annual 2023 income, Nasdaq added.
The alternate operator additionally mentioned it has obtained totally dedicated bridge financing for the money a part of the transaction, and plans to difficulty about $5.9 billion of debt between the signing and the closing of the deal, anticipated inside six to 9 months.
In April, Nasdaq posted first-quarter revenue that beat Wall Street estimates on the again of sturdy demand for its anti-financial crime software program. The upbeat outcomes got here on the again of the corporate’s $2.75 billion deal for anti-financial crime software program agency Verafin.
Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are monetary advisors to Nasdaq, whereas Qatalyst Partners LP is lead monetary advisor to Thoma Bravo and Adenza on the deal.
Reporting by Manya Saini in Bengaluru; Editing by Nivedita Bhattacharjee
