Adenza, a maker of software used on Wall Street, will be acquired by Nasdaq for $10.5 billion in cash and equity. 85.6 million shares of Nasdaq common stock and $5.75 billion in cash were acquired from owner Thoma Bravo, an investment firm.

 

Adena Friedman, the CEO of Nasdaq, has been moving the company towards technology and away from its traditional role as a trading platform that depends heavily on trading volume to survive.

 

“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,” Friedman said in a written statement. "Nasdaq aspires to be that partner every day, and with Adenza we can offer an even broader range of mission-critical solutions that enhance the liquidity, transparency, and integrity of the world’s financial system.”

 

Through the fusion of Calypso and AxiomSL, Adenza was produced. Calypso provides end-to-end workflows for treasury, risk, and collateral management to capital market participants, while AxiomSL aids financial institutions with industry-leading regulatory and compliance software. The largest financial institutions in the world, including global and regional banks, broker dealers, insurers, asset managers, pension funds, hedge funds, central banks, stock exchanges and clearing houses, securities service providers, and corporates, employ more than 60,000 users of Adenza, which has headquarters in both London and New York.

 

With 98% gross retention, 115% net retention, and a mix of about 80% recurring revenue, it has a solid clientele.The acquisition, according to Nasdaq, boosts its offers across a wider spectrum of regulatory technology, compliance, and risk management solutions. It also complements its marketplace technology and anti-financial crime solutions.

 

Before Monday's opening bell, shares of the New York City-based Nasdaq plummeted more than 7%.