Nasdaq has acquired Adenza from Thoma Bravo, a strategic move that is expected to enhance its transformation strategy. The acquisition is set to provide mission-critical solutions in risk management, regulatory reporting, and capital markets software, according to CEO Adena Friedman. The integration of Adenza is anticipated to bolster Nasdaq's organic revenue growth rate and operating margins.
The acquisition is projected to yield $80 million in annual net expense synergies by the second year post-acquisition and $100 million in long-term revenue synergies. This move is also expected to deepen Nasdaq's strategic relationships with global financial institutions.
In response to the acquisition, Nasdaq has restructured into three divisions: Capital Access Platforms, Market Services, and Financial Technology. The Financial Technology division further splits into Capital Markets Technology and Regulatory Technology units.
As part of the transaction terms, Holden Spaht, Thoma Bravo's Managing Partner, has joined Nasdaq’s Board of Directors. This restructuring aims at maximizing benefits for stakeholders and aligning with Nasdaq's transformation vision.
InvestingPro Insights
In light of Nasdaq's recent acquisition of Adenza, it's worth considering some key InvestingPro Tips and real-time metrics. Nasdaq (NDAQ) has a commendable history of raising its dividend for 12 consecutive years and maintaining dividend payments, which speaks to its financial stability. Furthermore, it's noteworthy that the company has been profitable over the last twelve months. However, it's also important to note a declining trend in earnings per share and that 6 analysts have revised their earnings downwards for the upcoming period.
In terms of real-time data, Nasdaq's Market Cap stands at 24.15B USD and the P/E Ratio is at 21.88. The company's Revenue as of Q3 2023 is 5999M USD.
Turning to Adenza (ADEN), the company stands out as a prominent player in the Professional Services industry and has maintained dividend payments for 28 consecutive years, which could potentially add value to Nasdaq's portfolio. However, it's worth noting a declining trend in earnings per share and that 2 analysts have revised their earnings downwards for the upcoming period.
Adenza's Market Cap is 412.32M USD and it has a P/E Ratio of 6.73. The company's Revenue as of Q2 2023 is 2400.21M USD.
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