From Breakingviews - Nasdaq futureproofs itself, but at 2021 prices
, a software firm that serves banks and brokers, for $10.5 billion from private equity group Thoma Bravo. Adenza fits neatly with Chief Executive Adena Friedman’s mission to re-mold Nasdaq from a simple exchange into a general problem-solver for financial firms. That logic is compelling; the price of the deal is less so.
Friedman had until now avoided big acquisitions, unlike deal-happy predecessor Bob Greifeld. She pursued this one with gusto, though: Adenza wasn’t for sale when Nasdaq started wooing Thoma Bravo, say people familiar with the situation. Strategically, Adenza’s business of helping banks and brokers manage risk and deal with increasingly onerous regulatory burdensjustifies a change of pace.
The price, though, is a throwback to the days before financial technology valuations started to witherNasdaq is paying 31 times Adenza’s estimated EBITDA this year of around $340 million, a valuation twice the exchange operator’s own. Factor in the costs Nasdaq thinks it can cut and that multiple falls to 25 times – but that’s still reminiscent of the market in 2021, before interest rates began to rise.
Little wonder Nasdaq shares plunged over 10% on Monday. True, the deal could still justify its lofty price if Adenza spurs faster growth than the company outlined on Monday, or if investors eventually reward Nasdaq’s more predictable cash flows with a higher valuation multiple. Who knows – perhaps tech valuations will stage a comeback, making that 25-times multiple look retroactively cheap.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
WSJ News Exclusive | Nasdaq to Buy Financial-Software Firm Adenza for $10.5 BillionNasdaq has agreed to acquire Adenza, a maker of software used by banks and brokerages, in a $10.5 billion cash-and-stock deal.
Leer más »
Nasdaq to buy financial software firm Adenza for $10.5 blnNasdaq said on Monday it has agreed to buy financial software firm Adenza from private-equity firm Thoma Bravo for $10.5 billion in a cash and stock deal as the exchange operator tries to reposition itself as a financial technology company.
Leer más »
Nasdaq deepens fintech push with $10.5 bln Adenza dealNasdaq on Monday said it will buy Thoma Bravo-owned software firm Adenza for $10.5 billion, in what would be the exchange operator's biggest acquisition as it speeds up its push to become a more tech-focused company.
Leer más »
Nasdaq CEO Adena Friedman on Adenza deal: Brings more capabilities to each of our clientsAdena Friedman, Nasdaq chair and CEO, joins 'Squawk Box' to discuss the exchange operator's deal to acquire financial services software and technology company Adenza from private equity firm Thoma Bravo for $10.5 billion, and more.
Leer más »
Nasdaq to acquire financial software maker Adenza for $10.5 blnNasdaq on Monday agreed to buy Thoma Bravo-owned software firm Adenza for $10.5 billion in the exchange operator's biggest acquisition to date, speeding up its push to become a more tech-focused company.
Leer más »
Nasdaq stock falls after deal to buy Adenza for $10.5 billion in cash and stock from Thoma BravoShares of Nasdaq Inc. fell 1.1% in premarket trading Monday, after the securities trading, clearing and listing company announced an agreement to buy...
Leer más »