Nasdaq has announced a massive $10.5 billion deal to acquire Adenza, a leading provider of risk-management and regulatory software solutions in the financial services sector. The acquisition is expected to bolster Nasdaq's position in regulatory technology, compliance, and risk management, while expanding its serviceable addressable market (SAM) to $34 billion, a significant $10 billion increase from its current level.
The acquisition of Adenza is a combination of cash and stock and follows a series of strategic moves by private equity firm Thoma Bravo, which acquired AxiomSL in 2020 and Calypso Technology in 2021. The two companies were subsequently merged under the new brand, Adenza, in late 2021. With headquarters in both London and New York, Adenza serves a diverse range of financial institutions, including banks, insurance firms, and broker-dealers. Their end-to-end platform covers various aspects of the financial services landscape, from data management and reporting to trading and compliance, and is available either as an on-premises installation or via the cloud.
This acquisition comes at a time of rapid change and increasing complexity in global regulations and market dynamics, placing increased pressure on financial institutions to modernize their infrastructure. By integrating Adenza into its operations, Nasdaq aims to enhance its ability to offer comprehensive support to financial institutions in these areas. The deal is expected to close within the next nine months.
In a statement, Nasdaq's Chair and CEO, Adena Friedman, emphasized the strategic importance of the acquisition: “The acquisition of Adenza brings together two world-class franchises steeped in market infrastructure, regulatory, and risk management expertise at a time when financial institutions are navigating some of the most complex market dynamics in history. 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.”
Innovations in the no-code and low-code space, such as platforms like AppMaster, also provide new alternatives and benefits for financial institutions in their quest to modernize their systems. These platforms offer faster and more cost-effective solutions for creating comprehensive and scalable software applications for various industries, including finance, and help clients to adapt to the ever-changing regulatory landscape.
With the acquisition of Adenza set to further enhance Nasdaq's service offering and strengthen its position in areas such as regulatory technology, compliance, and risk management, it is an exciting time for the financial services industry as more players seek to leverage cutting-edge technology to navigate the complex market dynamics and regulatory environment.
