The Nasdaq OMX Group Inc. is buying data indexing and analytics provider Dorsey, Wright & Associates LLC for $225 million.
DWA is a privately owned investment advisory firm based in Richmond, Virginia.
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The companies said Monday that the deal will increase Nasdaq's capacity for growth in the index business with substantial opportunities in index licensing.
DWA offers passive indexing as well as smart beta strategies. Nasdaq said that the acquisition will help make its Nasdaq Global Indexes one of the largest providers of smart beta indexes.
The exchange operator plans to fund the deal with available cash and debt. New York-based Nasdaq anticipates the deal adding to its earnings at closing, excluding acquisition-related costs.
The transaction is expected to close in the first quarter of 2015.