Nasdaq announced on Monday that it is spending $10.5 billion in cash and stock to acquire Adenza, a company that develops risk-management and related regulatory software for the financial services market, from Thoma Bravo.
The deal will extend Nasdaq’s serviceable addressable market (SAM) to $34 billion, $10 billion more than what it is today, the company stated in a press release.
The purchase price, consisting of $5.75 billion in cash and 85.6 million shares of Nasdaq common stock, would result in Thoma Bravo owning about 14.5% of the most active stock trading venue in the US by volume.
Under its current CEO Adena Friedman, Nasdaq has diversified more into businesses less affected by market fluctuations, such as anti-financial crime software and ESG services, Reuters reported.
Adenza is expected to reach about $590 million in annual 2023 revenue, Nasdaq added.
As well, the company said buying Adenza is expected to increase the medium-term organic revenue growth outlook for its Solutions Businesses, which designs and develops financial software for investors, from 7%-10% to 8%-11%.
Nasdaq noted that it expects to close the acquisition within the next nine months.
Shares of Nasdaq fell 11% in pre-market trading on Monday but have gained 18% over the past 52 weeks.
Contact Sean at sean@proactiveinvestors.com