Nasdaq has reached an agreement to acquire financial-software manufacturer Adenza from its private equity owners in a deal valued at $10.5 billion in cash and stock, marking Nasdaq's largest-ever acquisition. According to Nasdaq's statement on Monday, Thoma Bravo, the private equity firm that currently owns Adenza, will receive a 14.9% stake in Nasdaq and a board seat as part of the transaction.
Nasdaq aims to reduce its reliance on revenue generated from trading-related transactions and data, which can be variable. Through the acquisition of Adenza, Nasdaq anticipates that its solutions businesses will account for 77% of total revenue, up from the current 71%, thereby expanding its potential market even further.
Why it matters
Nasdaq has been actively diversifying its revenue streams beyond its traditional exchange business, which involves trading shares of public companies. In recent times, Nasdaq has made strategic investments in software, data, and other services. Additionally, it expanded its technology portfolio by acquiring Verafin, a company specializing in anti-crime and protection software.