June 22 – Nasdaq (NDAQ.O) announced on Thursday that it plans to issue debt worth $5.07 billion in order to fund its purchase of the software business Adenza, which is owned by Thoma Bravo.
The transaction, which was announced earlier this month and is valued at a total of $10.5 billion, is comprised of $5.75 billion in cash and 85.6 million shares of Nasdaq common stock. The goal of the transaction is to assist in the transition of the exchange operator into a financial technology business.
According to a statement, Nasdaq is considering the sale of senior notes with a combined face value of $4.25 billion and 750 million euros ($821.33 million).
The New York-based firm said that it has acquired fully committed bridge financing for the cash component of the transaction. Additionally, the company stated that it intends to issue about $5.9 billion in debt between the signing of the agreement and the completion of the transaction.
As a result of regulatory and nationalist resistance, huge cross-border exchange acquisitions have been essentially eliminated, and as trading volumes have fallen during the 2008–2009 financial crisis, transaction-based income has been stunted. In response, Nasdaq and several of its competitors have been transforming into financial technology corporations, primarily through transactions.
The United States exchange operator has made a number of acquisitions in recent years, some of which include the purchase of Nordic markets owner OMX for $3.7 billion in 2007, International Securities Exchange for $1.1 billion in 2016, content and analytics provider eVestement for $705 million in 2017, and anti-financial crime software firm Verafin for $2.75 billion in 2020.
($1 = 0.9132 euros)