Nasdaq is set to acquire Cinnober in a $190 million all-cash deal. The acquisition “advances and accelerates Nasdaq’s strategic direction as a technology and analytics provider to the global capital markets” and is expected to deliver 10% ROIC within 3-5 years.
Cinnober is a Swedish financial technology provider to brokers, exchanges and clearinghouses worldwide. Its board has unanimously recommended that shareholders and warrant holders accept the public offer made by Nasdaq. Nasdaq will fund the acquisition with either cash on hand or liquidity available under existing credit facilities. The deal is expected to close in Q4 2018.