On Monday, Nasdaq (NDAQ.O) announced its plan to acquire software firm Adenza, owned by Thoma Bravo, for $10.5 billion. This deal marks the exchange operator’s largest acquisition as it accelerates its efforts to transform into a more technology-focused company.
The acquisition will consist of $5.75 billion in cash and Nasdaq common stock totaling 85.6 million shares.Nasdaq aims to utilize this purchase to drive growth and diversify its operations under the leadership of CEO Adena Friedman.
Thoma Bravo currently controls Adenza, and Nasdaq plans to issue approximately 14.5% of its outstanding shares to Adenza’s owners.
“With Adenza, we will have a more complete suite of essential software and technology solutions. It makes managing risks and complying with regulations simpler and more efficient for our clients,”. said Tal Cohen, president of Market Platforms at Nasdaq.
The exchange operator also said it has received fully committed bridge financing for the cash part of the transaction. Moreover , exchange operator plans to issue about $5.9 billion of debt between the signing and the closing of the deal. This is expected within six to nine months.
The company has increasingly looked to move its business away from market sensitive exchange operations . In addition , the company chose to lean into the financial software offerings for institutional investors.
In April, Nasdaq posted first-quarter profit that beat Wall Street estimates on the back of strong demand for its anti-financial crime software. The upbeat results came on the back of the company’s $2.75 billion deal for anti-financial crime software firm Verafin.
Nasdaq shares were down 1.4% in premarket trading.