Nasdaq is set to acquire the capital markets software company Adenza from Thoma Bravo for $10 billion, strengthening its role as a “technology company serving the global financial system.”
Adenza was formed through the merger of treasury management firm Calypso and regulatory software provider AxiomSL. The acquisition will enhance Nasdaq’s Marketplace Technology and Anti-Financial Crime solutions, expanding its capabilities in regulatory technology, compliance, and risk management systems.
Adenza boasts an appealing financial profile, with expected revenue of approximately $590 million in 2023, an organic revenue growth rate of around 15%, annual recurring revenue growth of 18%, and an adjusted EBITDA margin of 58%. Nasdaq anticipates that this acquisition will boost revenue from its Solutions Businesses by 77%. Furthermore, the company expects to realize $80 million in run-rate net expense synergies by the end of year two, achieved through functional alignment, product rationalization, location optimization, and vendor and real estate consolidation.
Tal Cohen, president of market platforms at Nasdaq, stated, “With Adenza, we will have a more complete suite of essential software and technology solutions that simplify and enhance risk management and regulatory compliance for our clients. With complementary capabilities and geographic footprints, we can clearly see a path to deepening our global client relationships with leading end-to-end platforms across risk, trading, and regulatory reporting.”