Nasdaq has entered into a definitive agreement to acquire Marketwired, a worldwide provider of news distribution services and analytics in its latest merger and acquisition (M&A) move to help solidify its position in the financial services industry, according to a Nasdaq statement.
Over the past year, Nasdaq embarked on an industry-wide expansion of its services suite and capabilities. Most recently, the group made a play for Chi-X Canada in an attempt to help fortify an existing link between American and Canadian markets. Prior to this, Nasdaq opted to look into expanding its blockchain ambitions abroad, which saw the planning of securities-focused applications in Estonia.
Setting its sights on Marketwired would help Nasdaq tap into an extensive client pool of over 8,500 clients, which includes both private corporations and public relations agencies. Nasdaq’s corporate services clients are expected to benefit from access to Marketwired’s social media targeting tools and analytics.
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Given the formal acquisition however, the deal is expected to close by the end of Q1 2016, and will be funded via a combination of debt and cash in hand. In material terms, the upcoming acquisition is also expected to yield no material effect on Nasdaq’s non-GAAP earnings within a period of twelve months after a closing date, abstaining from any impact on its financial leverage or capital return strategy.
According to Adena Friedman, President and Chief Operating Officer (CEO), Nasdaq, in a recent statement on the acquisition: “This transaction is a testament to our commitment to growing this business and delivering the most innovative communications tools and intelligence to our Corporate Solutions clients across the investor relations and public relations solutions suite.”
“There is a natural fit between the two organizations in terms of our long-term strategy and shared values based around innovation and customer centricity. We are excited about the benefits this combination will provide to Marketwired clients through a broader global distribution network, a comprehensive end-to-end workflow solution, and improved customer service,” added Adnan Ahmed, President and CEO, Marketwired, in an accompanying statement.
Nasdaq recently made headlines after it reported its January metrics across its cash equities and derivatives business. More specifically, the group’s US and European equities business took a notable dive in January, underpinned by diving European FICC volumes.