Nasdaq, an American stock exchange, announced on Friday that it would acquire Cinnober, a Swedish fintech provider to brokers, exchanges, and clearinghouses. Nasdaq made an all-cash recommended the public offer to the shareholders and warrant holders of the firm worth $190 million.
Nasdaq will fund the acquisition with either cash on hand or liquidity available under existing credit facilities. The exchange operator expects to acquire the firm through a recommended public cash offer, which was launched on Friday at 08:01 CET. The company has offered to buy all outstanding shares and warrants in Cinnober at a price of SEK 75 per share and SEK 85 per warrant.
By adding Cinnober to its ranks, Nasdaq aims to strengthen its position as a leading market infrastructure technology provider. Through the acquisition, the exchange operator expects to deliver attractive returns to its shareholders. Specifically, it believes the transaction will meet Nasdaq’s 10 percent 3-5 year ROIC (return on invested capital) objective.
Commenting on the transaction, Adena Friedman, President and CEO, Nasdaq 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.”
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“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.”
Cinnober Intends to Accept the Offer from Nasdaq
At Cinnober, the Board of Directors has been unanimous in recommending that shareholders and warrant holders accept the offer. The acceptance period of the public tender is expected to close in Q4 of this year.
The co-founder and Chairman of the Board of Directors of Cinnober, Nils-Robert Persson, added: “I see the offer as the next step in Cinnober’s development as it will enable Cinnober and its highly talented employees to be even more successful in serving customers as well as expanding its technology and offering to even more customers and segments.”
“I really believe in the strategic logic of combining Cinnober and Nasdaq’s Market Technology business also as it reinforces the strong technology foundation in Sweden. As the largest shareholder of Cinnober, I am supportive of the offer and intend to accept the offer.”