For $10.5B, Nasdaq Acquires Financial Services Software Company Adenza

(CTN News) – The Nasdaq disclosed today that it is doingle out $10.5 billion for the acquisition of Adenza, a company that develops risk management and related regulatory software for the financial services sector.

The megabucks deal, which will comprise an even mix of cash and stock, will result in Nasdaq’s serviceable addressable market (SAM) expanding to $34 billion, according to a press release issued today by the company, $10 billion more than it is today.

In addition, the deal also sits among the biggest acquisitions of the year so far, second only to Qualtrics’ $12.5 billion acquisition announced just a few months ago.

One becomes two

In the past few years, Thoma Bravo has made two acquisitions that resulted in Adenza being formed as the result of those acquisitions.

After buying AxiomSL in 2020, Adenza went on to acquire Calypso Technology the following year, merging the two companies under the new Adenza brand by the end of 2021, before merging the two companies into a single entity.

Having offices in London and New York, Adenza offers an end-to-end platform that encompasses everything from data management to reporting, and is available either through an on-premises installation or cloud-based deployment to banks, insurance companies, broker-dealers, and other financial services firms.

As a result of bringing in Adenza, Nasdaq – which operates three stock exchanges in the United States and seven in Europe – said it will be able to offer “comprehensive support to financial institutions” in areas such as regulatory technology, compliance, and risk management.

The Nasdaq chair and CEO, Adena Friedman, was quoted in a statement as saying that the acquisition of a leading software company is an exceptional opportunity for Nasdaq to enhance its position as the heart of the global financial system and enhance its competitiveness.

Upon the acquisition of Adenza, two world-class brands will be merged to create a company with a wealth of infrastructure, regulatory, and risk management expertise at a time when financial institutions are navigating some of the most complex market dynamics in history.

It doesn’t matter whether it’s the rapidly evolving global regulations or the rapidly increasing pressures on our clients to modernize their infrastructure, our clients are looking for trusted partners who are qualified to assist them in these challenging times.”

According to Nasdaq, the transaction is expected to close within nine months of the announcement.

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