Nasdaq has confirmed its agreement to buy Adenza, a provider of risk management and regulatory software, from Thoma Bravo, a software investment firm. The purchase price stands at $10.5 billion.

Adenza’s acquisition is a strategic move for Nasdaq, adding regulatory technology, compliance, and risk management to its service portfolio. This addition could strengthen Nasdaq’s ability to assist financial institutions and further develop a platform for multiple asset classes that encompasses the full trade lifecycle.

For 2023, Adenza projects a revenue of around $590 million. This projection comes with an anticipated organic growth rate of 15% and an annual recurring revenue growth rate of 18%. Notably, Adenza maintains a substantial client base, with gross retention at 98% and net retention at 115%.

As part of the agreement, Thoma Bravo’s managing partner, Holden Spaht, will join the Nasdaq’s board of directors, increasing its size to twelve members.

[Image courtesy: Adenza]