Nasdaq is so much more than just an exchange platform. The company has a finger in many pies. Ranging from blockchain to cryptocurrency and now other trading technology firms, things are constantly evolving. In a new turn of events, the firm attempts to acquire Cinnober for a cash prize of $190m.
Cash-only acquisitions usually do not necessarily involve a very large sum of money. In the case of Nasdaq and Cinnober, that situation is very different. The Swedish trading technology firm has caught the attention of the exchange operator in recent months The Swedish firm is also struggling a bit in terms of finance, despite selling a 60% stake in its market surveillance unit.
An Interesting Offer by Nasdaq
As such, now is the time to pounce on this opportunity. Nasdaq has noted an increase in quarterly net income. It takes money to make money, thus investing in other companies makes a lot of sense. The firm is undergoing a repositioning effort to primarily focus on capital markets technology and analytics.
Nasdaq CEO and President Adena Friedman adds:
“The combined intellectual capital, technology competence and capabilities of Cinnober and our Market Technology business will expand the breadth and depth of our fastest growing division at Nasdaq. Not only have the global capital markets continued to evolve rapidly, new marketplaces in various industries are demanding market technology infrastructure that enables rapid growth and scale as well as access to tools to promote market integrity. This acquisition will enhance our ability to serve market infrastructure operators worldwide, and will accelerate our ability to expand into new growth segments.”
This purchase has not been finalized as of yet. The offer has been recommended by the Cinnober board, which will help move things along accordingly. If all things go according to plan, the deal should be finalized in Q4 of 2018. Whether or not Nasdaq can recoup such an investment in the foreseeable future, is a different matter altogether.