Daily Management Review

Nasdaq shares lose nearly 12% after the largest deal in company’s history is announced


Nasdaq shares dropped by about 12% after it was revealed that the stock exchange operator agreed to the biggest deal in its history.

bfishadow on Flickr
bfishadow on Flickr
The exchange operator Nasdaq and the investment firm Thoma Bravo have reached an agreement for Nasdaq to acquire Adenza, a banks and brokers software provider, for $10.5 billion. Following the announcement of the deal, the operator of the stock market saw its share price drop 11.86% to $51.

According to the agreement, Thoma Bravo will obtain 14.9% of the Nasdaq Capital Market and will take over as the company's largest stakeholder. Additionally, it will hold a seat on the Nasdaq board of directors. The transaction is anticipated to be finalized in six to nine months. The exchange's greatest acquisition prior to that was the $3.7 billion purchase of Nordic markets owner OMX in 2007.

The software from Adenza is primarily utilized by banks and brokerage companies for risk management and regulation. According to analysts, the agreement will enable Nasdaq to expand beyond its current role as a stock exchange operator.

source: reuters.com