Nasdaq has entered a definitive agreement to acquire Adenza, a provider of risk management and regulatory solutions, from software investment firm Thoma Bravo. The $10.5 billion cash and shares deal will significantly increase Nasdaq’s offerings across regulatory technology, compliance, and risk management, and complement its marketplace technology and anti-financial crime solutions. It will also expand the company’s customer base and strengthen its geographic footprint.
Adenza was created through the July 2021 merger and rebrand of RegTech AxiomSL and trading, treasury and risk management platform Calypso Technology. It offers an end-to-end platform for trading, treasury, risk management and regulatory compliance that can be deployed on premise or in the cloud.
With dual headquarters in London and New York, Adenza has more than 60,000 users worldwide and will extend Nasdaq’s access to the European banking sector and build on its strength in North America and Asia-Pacific. Nasdaq and Adenza also bring together complementary capabilities in asset classes to address the spectrum from OTC fixed income to listed equities.
“The addition of Adenza introduces a fast-growing $10 billion serviceable addressable market to Nasdaq,” says Tal Cohen, president of market platforms at Nasdaq. “Since the implementation of Dodd-Frank in 2010, banks have increased their compliance costs by more than $50 billion per year. With Adenza, we will have a more complete suite of essential software and technology solutions that make managing risks and complying with regulations simpler and more efficient.”
Adenza CEO Didier Bouillard, says: “This transaction is an endorsement of the entire Adenza team and what we have built with Thoma Bravo, from our market-leading products to the immense value we have delivered for our customers. Together with Nasdaq, we will be in an even stronger position to take advantage of growing market opportunities and provide customers with expanded solutions to solve their most complex problems.”
Adenza’s estimated revenue of $590 million in 2023 is expected to enhance Nasdaq’s financial profile by increasing the revenue of its solutions businesses from 71% of total revenue to an estimated 77% in 2023.
The transaction is subject to regulatory approvals and other customary closing conditions and is expected to close within six to nine months.
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