Acquisitions & Mergers

For $10.5 billion, Nasdaq buys Adenza.

By Admin - 18 Jan 2024 03:41 PM

Today, Nasdaq announced that it is spending $10.5 billion to buy Adenza, a business that creates regulatory software and risk-management tools for the financial services industry.

According to a press release from the firm today, the megabucks acquisition, which consists of an equal portion of cash and stock, will increase Nasdaq's serviceable addressable market (SAM) to $34 billion, or $10 billion over its current level. Second only behind Qualtrics's $12.5 billion acquisition, which was disclosed a few months ago, is the deal, which ranks among the largest acquisitions of the year thus far.

Adenza provides banks, insurance companies, broker-dealers, and other similar financial sector corporations with an end-to-end platform that covers everything from data administration to reporting and is accessible through cloud computing or on-premises installation. The company has two headquarters: one in New York and the other in London.

Nasdaq, which runs three stock exchanges in the United States and seven in Europe, said it will be in a better position to offer “comprehensive support to financial institutions” in the areas of regulatory technology, compliance, and risk management now that it has taken Adenza under its wing.

Financial institutions employ software tools sold by Adenza to make sure their operations adhere to regulatory requirements. The technologies can gather financial activity data from an organisation, look for indications of compliance problems, and present the data in a dashboard. The software developed by Adenza also simplifies associated duties, such making sure dashboard data is correct.

The company also provides a different set of applications that facilitate trade execution for financial institutions. A platform that banks can use to get market data and buy shares is one of the software solutions offered by Adenza. Users are able to evaluate new investing strategies before putting them into practice by using a simulation tool.