Nasdaq today, June 12, announced the purchase of Adenza, a company that specializes in creating risk management software and related regulation for the financial services market.
The cost of this transaction will be $10.5 billion. The agreement on the purchase of a company specializing in software provides for an even distribution of cash and shares. As a result of the transaction, the serviced addressable Nasdaq market (SAM) will grow to $34 billion. Currently, this figure is equal to $24 billion.
Adenza appeared as a result of two acquisitions that Thoma Bravo has made over the past couple of years. Initially, the private equity firm became the owner of AxiomSL in 2020. Thoma Bravo then acquired Calypso Technology in 2021. In the same year, the two companies were merged under a new brand.
Thoma Bravo is one of the largest software investors in the world. As of March 31, 2023, the company had assets worth more than $127 billion under management.
Clients of Adenza, whose two headquarters are located in London and San Francisco, are banks, insurance companies, broker-dealers, and similar firms specializing in the provision of financial services. The comprehensive platform created by Adenza specialists covers both data management and reporting. This functional area is available locally and in the cloud.
After the purchase of Adenza, Nasdaq, which currently operates three stock exchanges in the United States and seven in Europe, will be better able to provide comprehensive support to financial institutions in the field of regulatory technology. Also, as a result of the transaction, risk management will improve and a higher level of compliance will be ensured.
Nasdaq Chairman and CEO Adena Friedman assesses the acquisition of Adenza as an opportunity to strengthen the position of the OTC market at the center of the global financial system. She also stated that the deal combines two world-class franchises, each of which has experience in the field of market infrastructure, risk management, and regulation.
Adena Friedman noted that financial institutions are currently operating in one of the most difficult market trends in history. According to her, the current moment is notable for the situation that exists in the range from rapidly changing global regulations to rapidly growing pressure. She noted that in these conditions there is a need to modernize the infrastructure. Separately, Adena Friedman said that currently, clients are looking for reliable partners who can provide support in difficult circumstances.
Nasdaq said it plans to complete the deal over the next nine months.
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