Nasdaq Inc. will buy data provider eVestment for $705 million in a bid to bulk up its proprietary analytics and technology offerings for institutional clients.
The exchange operator said Tuesday that the deal, which is expected to close in the fourth quarter, will be funded using cash and debt.
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Nasdaq Chief Executive Adena Friedman, who took over in January, has pushed for the company to expand its data business. Information and technology services combined accounted for 22% of Nasdaq's revenue last year, according to Thomson Reuters. Roughly 60% of its revenue came from its core exchange business.
Ms. Friedman said eVestment's business complements existing Nasdaq products such as its mutual fund quote service and the Nasdaq Analytics Hub, which launched in May.
eVestment, which operates as a subscription-based software-as-a-service business, has more than 2,000 clients ranging from BlackRock Inc. to Alphabet Inc.'s Google, according to its website.
Nasdaq shares, up 12% this year, were inactive premarket.
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(END) Dow Jones Newswires
September 05, 2017 09:16 ET (13:16 GMT)