Nasdaq buys fintech software Firm Adenza for $10.5 billion to accelerate growth

Nasdaq, a prominent player in the financial industry, is buying Adenza in a deal valued at $10.5 billion. Adenza, which is owned by Thoma Bravo, makes software used on Wall Street. The cash-and-stock deal includes a combination of $5.75 billion in cash and approximately 85.6 million shares of Nasdaq common stock being exchanged.

This acquisition is a significant step for Nasdaq as it looks to leverage Adenza’s expertise and software capabilities to strengthen its position in the financial technology landscape.

The news comes three years after Nasdaq acquired fintech startup OneReport to accelerate the delivery of ESG reporting and workflow solutions to corporate clients. OneReport is a provider of corporate responsibility and environmental, social, and governance (ESG) data management and reporting services. The financial terms of the deal were not disclosed.

The move also represents Nasdaq CEO Adena Friedman’s strategic efforts to expand the company’s presence in the technology sector. Nasdaq aims to diversify its offerings beyond its traditional role as a trading marketplace, which heavily relies on trading volumes for its success, Reuters reported.

“With Adenza, we will have a more complete suite of essential software and technology solutions that make managing risks and complying with regulations simpler and more efficient for our clients,” said Tal Cohen, president of Market Platforms at Nasdaq.

In recent years, Nasdaq has been actively shifting its focus away from market-sensitive exchange operations and instead embracing financial software solutions tailored to institutional investors. This strategic move reflects the company’s commitment to expanding its presence in the financial software sector and catering to the evolving needs of its institutional clientele. By prioritizing these offerings, the company aims to provide enhanced value and specialized services to its target market.

“From fast-evolving global regulations to rapidly increasing pressures to modernize infrastructure, our clients are seeking trusted partners equipped to support them in this challenging environment,” Friedman said in a written statement. “Nasdaq aspires to be that partner every day, and with Adenza we can offer an even broader range of mission-critical solutions that enhance the liquidity, transparency, and integrity of the world’s financial system.”

Founded on February 8, 1971, Nasdaq is a global technology company serving the capital markets and other industries. Our diverse offering of data, analytics, software, and services enables clients to optimize and execute their business vision with confidence.