Nasdaq to acquire financial services software company Adenza from Thoma Bravo for $10.5B

Nasdaq today revealed that it’s doling out $10.5 billion to acquire Adenza, a company that develops risk-management and related regulatory software for the financial services market.

The megabucks deal, which constitues an even mix of cash and stock, will extend Nasdaq’s serviceable addressable market (SAM) to $34 billion, the company said in press release today, $10 billion more than what it is today. The deal also sits among the biggest acquisitions of the year so far, second only to Qualtrics’ $12.5 billion acquisition which was announced a few months back.

Two become one

Adenza emerged from two acquisitions that Thoma Bravo made in the past couple of years. The private equity powerhouse snapped up AxiomSL in 2020 followed by Calypso Technology the following year, before merging the two companies under a new brand in late 2021.

Adenza, which claims dual headquarters in London and New York, serves banks, insurance firms, broker-dealers, and similar financial service companies with an end-to-end platform spanning everything from data management to reporting, available either via an on-premises installation or the cloud.

With Adenza under its wing, Nasdaq — which operates three stock exchanges in the U.S. and seven in Europe — said it will be better positioned to provide “comprehensive support to financial institutions” across regulatory technology, compliance, and risk management.

“This is an exceptional opportunity to acquire a leading software company that enhances Nasdaq’s position at the heart of the global financial system,” Nasdaq chair and CEO Adena Friedman said in a statement. “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.”

Nasdaq said it expects to close the deal within the next nine months.