Wall Street major NASDAQ is expected to plunge into crypto space as recently it has made an offer to buy a crypto-based fintech start-up based in Stockholm, Sweden.
NASDAQ, which is one of the largest stock exchanges, has formally publicized that it has made a public offer to Swedish fintech solutions firm Cinnober. The company is a leading solutions provider for real-time clearing technology with high-performance trading and post-trading activities in place for cryptocurrency exchanges.
On the deal-specific front, NASDAQ will buy Cinnober for $190 million to the extent that all cash public offer accepted by Cinnober shareholders. NASDAQ has publicized the official announcement in a press releases stating that it wants to receive at least 10% return on invested capital in the next 3-5 years which is in the best interest of the shareholders.
Amid this, NASDAQ said in its statement that the acquisition of Cinnober would consolidate its position as one of the world’s leading market infrastructure technology solutions providers. The President and CEO of NASDAQ, Adena Friedman profusely said that “the combined intellectual capital, technical competence, and capabilities of Cinnober and our Market Technology business will expand the breadth and depth of our fastest growing division at Nasdaq.”
She further said that “not only have the global capital markets continued to evolve rapidly, but new marketplaces in various industries are also 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.”
Additionally, the Board of Directors of Cinnober has officially released a public statement recommending that “shareholders and warrant holders of Cinnober Financial Technology accept the public offer made by Nasdaq.” With this, the board has given approval NASDAQ to conduct a due diligence review of Cinnober structure and operations regarding the ongoing offer. On legality front, the acceptance period of offer starts around 29th October 2018 and expires around 14th December 2018 with not extension limit in place.
Let us not forget that merger and acquisition is one of the best strategic exercises that benefits and adds value to both target and acquirer by creating synergy out of the whole transaction!!