Nasdaq buys Adenza from Thoma Bravo in its biggest buy ever

Key Points

Nasdaq agreed to pay $10.5 billion for software company Adenza, owned by private equity firm Thoma Bravo.
Thoma Bravo will receive $5.75 billion in cash and $85.6 million Nasdaq shares.
Agreement extends Nasdaq's interest in fintech.

The Nasdaq (NDAQ) is expanding its reach into fintech by buying software company Adenza, owned by private equity firm Thoma Bravo, in its largest deal to date. Shares fell Monday morning after the news.

The exchange announced it was paying $10.5 billion in cash and stock for Adenza, which provides risk management and regulatory software for the financial industry.

The Nasdaq said Thoma Bravo would receive $5.75 billion in cash and 85.6 million shares, giving the company a 14.9% stake in the exchange. Additionally, Thoma Bravo managing partner Holden Spaht is expected to be named to the Nasdaq board, which will be expanded to 12 members.

Nasdaq CEO Adena Friedman called the move an “exceptional opportunity” that “strengthens Nasdaq's position at the heart of the global financial system.” Tal Cohen, president of Nasdaq Marketing Platforms, added that since the implementation of the Dodd-Frank rules in 2010, banks have increased their compliance costs by more than $50 billion a year. He noted that with Adenza, “we will have a more comprehensive suite of essential software and technology solutions that will make risk management and regulatory compliance simpler and more efficient for our customers.”