![]() Still, analysts said the upfront price is steep and the deal is risky. ![]() "The cross-sell opportunities are significant." "This acquisition doesn't veer off from Nasdaq's strategy or what Adena's been pursuing since she's been the CEO," Bond said. As Nasdaq's recurring revenues have increased, so too has its valuation, which went from one of the lowest in the exchange sector prior to 2017 when Friedman took over, to one of the highest now, said Rosenblatt Securities analyst Andrew Bond. With Adenza, Nasdaq's recurring revenues, which investors like for their predictability, will comprise around 77% of overall revenues, up from 71%. As part of Nasdaq, Adenza would get access to new banking clients in the United States and Europe as well, allowing it to drive revenues more than it could on its own, analysts said. ![]() Nasdaq also hopes to cut overlapping costs, which would boost profitability and make the deal look cheaper, one of the sources said. However, some experts including a major Nasdaq investor and two sources familiar with the deal said in interviews the acquisition was in line with Chief Executive Adena Friedman’s push to transform Nasdaq into a financial technology company and the price might eventually prove justified.īy one metric, Nasdaq paid around what Thoma Bravo spent on creating Adenza through the merger of two software firms, the sources familiar with the deal said. ![]() Nasdaq shares are currently down around 12% since the deal was announced. Nasdaq said on June 12 it would buy Adenza from private equity firm Thoma Bravo, and its stock sank over 10% that day as investors reeled from sticker shock. NEW YORK, June 22 (Reuters) - Nasdaq's (NDAQ.O) eye-popping $10.5 billion bet on the little known financial software company Adenza will help the exchange operator vastly expand the market for its products, from risk management and regulatory software to anti-financial crime technology. ![]()
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