Nasdaq is set to acquire Sweden-based trading solution developer Cinnober in a $190m cash deal.
The acquisition would give Cinnober a strengthened position in the market infrastructure technology space. There will be attractive shareholder returns, product enhancements, cross-sale and more opportunities for Nasdaq through this deal.
Nadaq is expects this deal to meet its 10 per cent three to five year ROIC objective and be accretive to non-GAAP EPS within the next 12 months.
Funds for the transaction will be made via either cash on hand or liquidity available under existing credit facilities.
The acquisition offer is being made for all outstanding shares and warrants in Cinnober, with the company’s board having recommended shareholders accept the offer. The deal is planned to close in Q4 2018.
Cinnober offers exchanges, clearinghouses, banks and brokers with exchange and real-time clearing technology solutions. Its products include price discovery and matching, real-time risk management, clearing and settlement, index calculation, data distribution and market surveillance.
Nasdaq president and CEO Adena Friedman said, “The combined intellectual capital, technology competence and capabilities of Cinnober and our Market Technology business will expand the breadth and depth of our fastest growing division at Nasdaq.
“Not only have the global capital markets continued to evolve rapidly, new marketplaces in various industries are demanding market technology infrastructure that enables rapid growth and scale as well as access to tools to promote market integrity.
“This acquisition will enhance our ability to serve market infrastructure operators worldwide, and will accelerate our ability to expand into new growth segments.”
Nasdaq is a trading, clearing, exchange technology, listing, information and public company service provider. The company builds technology to help customers plan, optimise and execute their business plans, while improving the transparency of global capital markets.
Earlier in the year, Nasdaq took part in the $30m funding round of Digital Reasoning, which uses AI to understand human intentions and behaviours.
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