Another acquisition this week as NASDAQ announced its plans to purchase analytics provider, eVestment Alliance LLC, for over $705 million. This is being done to bolster NASDAQ’s market technology business and impress additional institutional investors. The deal comes amid a wave of acquisitions in the tech industry, as exchange operators seek to boost margins and reduce company reliance on trading amid weak volumes and stiffer competition.
eVestment, whose clients include Morgan Stanley, Google parent Alphabet Inc., and BlackRock Inc., provides cloud-based services to help investors monitor stock market trends and make better investment decisions. About 75 percent of NASDAQ’s revenue comes from non-transaction related businesses that provide for a steadier income flow than trading fees.
“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. 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,” said Adena Friedman, president and CEO of NASDAQ.
“The strategic alignment of eVestment with NASDAQ’s complementary technology and services to the global institutional investment industry, including our surveillance technology, SMARTS, our recent Analytics Hub launch, as well as our long-standing operation of the Mutual Fund Quotation Service, will further expand our buy side relationships, accelerate our growth opportunities, and advance our objectives to deliver proprietary analytics to our clients,” Friedman continued. “As a trusted steward of the capital markets industry, we view our partnership with eVestment as a means of strengthening NASDAQ’s support of the investment management industry through enhanced technology and service offerings. Additionally, NASDAQ’s global distribution will create opportunities to propel eVestment’s proprietary offering around the globe – creating a compelling value proposition for our clients and investors.”
Jim Minnick, chief executive officer and co-founder of eVestment, had this to say about the acquisition: “Our leadership team is excited to join NASDAQ. We believe the combined organization will allow us to grow our core business while tapping into NASDAQ’s technology expertise, leading data and software products, and global distribution. We’ve grown this business at a 12% annual growth rate since 2013, and together, we expect to produce new and expanded opportunities for our clients by combining our proprietary capabilities with NASDAQ’s core information services offerings.”