Nasdaq (NDAQ), The second largest stock exchange in the world has recently revealed that it has offered to acquire Swedish exchange and trading solutions supplier Cinnober for $190 million in an all-cash transaction. Nasdaq has made an all-cash public recommended offer to the shareholders of Cinnober in order to solidify its Market Technology business which serves a range of capital markets participants.
From the announcement, Cinnober?s acquisition will bring an attractive regenerating revenue stream to Nasdaq shareholders plus a couple of technology that improve internal functions and other commodities. Cinnober supplies a variety of asset trading and clearing solutions across the whole transaction chain including market data services and cost discovery.
Cinnober current dealings and partnerships
Currently Cinnober offers a portfolio of trading and clearing solutions and it is in record that previously Cinnober collaborated with BitGo, the number one market holder in institutional-grade crypto security, to supply solutions to crypto trading to handle expanding exchange volumes. The kinds of custodial services offered through a well-regarded fintech firm like Cinnober could assist reduce institutional investor worries over the protection of their digital assets.
The biggest shareholder and co-founder of Cinnober, Nils-Robert Persson believes the offer makes sense for both firms and intends to accept the offer.
He stated that he sees the offer as the next step in Cinnober?s development as it will make Cinnober and its highly gifted employees to be even more successful in serving clients as well as increasing its technology and offering to even more clients and segments. He also believes in the strategic logic of combining Nasdaq?s Market Technology business and Cinnober also as it reinforces the strong technology foundation in Sweden.
What follows after the acquisition
The acquisition of Cinnober news follows a closed-door meeting Nasdaq held with crypto industry professionals. During the meeting, people talked about ways of legitimizing digital assets as a traditional securities commodity in hopes of appeasing regulators.
Recently Nasdaq also announced that it is considering bringing cryptocurrency info to its Analytics Hub, a market research tool which was opened in 2017 to assist users parse unstructured data to make informed investment decisions.
The closing expectation of the deal is in the fourth quarter of 2018 and unanimously the board of Cinnober has recommended that warrant holders and shareholders to accept the offer.