In a push to take its strategic technology infrastructure to the next level, the world’s second-largest stock exchange NASDAQ is set to acquire Swedish fintech company Cinnober for $190 million.
An Answer to the Growing Demand
NASDAQ seeks to acquire a major Swedish financial technology provider Cinnober, making a $190 million all-cash recommended public offer to the company’s shareholders, according to an official press release.
Purportedly, the move stems from the need to answer to the growing demand of various industries which require comprehensive market technology infrastructure.
The release reads:
…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.
Speaking on the matter, the co-founder and current Chairman of the Board of Directors of Cinnober Nils-Robert Persson, outlined that this is an important step for the development of the fintech company:
I see the offer as the next step in Cinnober’s development as it will enable Cinnober and its highly talented employees to be even more successful in serving customers as well as expanding its technology and offering to even more customers and segments.
According to the official release, NASDAQ is ready to fund the transaction with either cash on hand or with available liquid assets from credit facilities in existence. The deal is valued at $190 million.
The President and CEO of NASDAQ, Adena Friedman, noted:
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
Earlier this year, the CEO of the company also outlined that the stock exchange “would consider becoming a cryptocurrency exchange in the future once the industry overcomes hurdles.”
What do you think of NASDAQ’s offer to buy Cinnober? Don’t hesitate to let us know in the comments below!
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