Nasdaq has announced plans to acquire eVestment, a data and analytics platform for the investment industry, in a $705 million deal.
The transaction will be funded through a mixture of cash and debt.
Founded out of Georgia in 2000, eVestment offers a range of subscription cloud-based services geared toward helping institutional investors spot trends, track the best investment managers, and succeed in the world of investment. The company claims more than 2,000 clients, including “92 percent of the top asset managers, 76 percent of the top consulting firms, and 80 percent of the top 20 pension funds,” according to a statement issued by the firm.
As the corporate giant behind the famous New York-based stock market and eight exchanges across Europe, Nasdaq needs little introduction. Any deal by one of the world’s largest stock exchanges is notable, and Nasdaq has made a few acquisitions over the years, including private company trading platform SecondMarket back in 2015, while just two months ago it snapped up London-based Sybentix to adopt artificial intelligence (AI) as a means to prevent market abuse from traders.
Nasdaq said that having eVestment on board will help turbocharge its existing Global Information Services unit and offer richer datasets and expertise to investment managers around the world.
“The investment management community is relying increasingly on independent data and advanced analytics to drive their key business decisions, including asset allocation and investment choices,” noted Nasdaq president and CEO Adena Friedman. “eVestment is the definitive source from asset managers of critical fund-level and investment-level data and analytics to enable asset owners to make informed decisions.”
Nasdaq added that it expects to close the eVestment acquisition by the end of 2017.