Nasdaq to acquire financial software maker Adenza for $10.5 billion
Summary
Nasdaq, like its peers, has been on an acquisition spree to diversify its portfolio of technology and intellectual property after regulations in 2005 opened the equities trading market up to competition from brokers. Adenzas software is primarily used by banks and brokerages, and analysts said Nasdaqs deal to buy the company would help it diversify further beyond its roots as an operator of stock exchanges. As part of the deal, Thoma Bravo will get a 14.9% stake in Nasdaq, making the private equity firm one of the biggest shareholders in the exchange operator. Nasdaq valued Adenza at about 31 times the companys earnings before interest, taxes, depreciation and amortization (EBITDA) this year, and is raising about $5.9 billion of debt to support the acquisition. But Nasdaq 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%.
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