Nasdaq stock dives after deal to buy Adenza for $10.5 billion in cash and stock from Thoma Bravo

Shares of Nasdaq Inc.
NDAQ,
+0.28%
dove 5.1%, enough to pace the S&P 500’s premarket decliners Monday, after the securities trading, clearing and listing company announced an agreement to buy software company Adenza for $10.5 billion in cash and stock from Thoma Bravo. The terms of the deal include $5.75 billion in cash and 85.6 million shares of Nasdaq common stock, which will be issued to the owners of Adenza after closing of the deal, expected to occur within six to nine months. The number of shares represents 17.4% of Nasdaq’s shares outstanding. Nasdaq plans to issue 5.9 billion of debt for the cash portion of the deal. “With Adenza, we will have a more complete suite of essential software and technology solutions that make managing risks and complying with regulations simpler and more efficient for our clients,” said Tal Cohen, president of market platforms at Nasdaq. Adenza is expected to have $590 million of revenue in 2023, with annual recurring revenue growth of 18%. Nasdaq’s stock has lost 5.7% year to date through Friday, while the S&P 500
SPX,
+0.11%
has gained 12.0%.