Nasdaq targets buy-side with $705m analytics acquisition

eVestment provides content and analytics to more than 2000 clients including top asset managers.

Nasdaq is to acquire an investment management content and analytics provider for $705 million in a deal the exchange operator expects will bolster its buy-side relationships.

eVestment offers institutional investors a database for traditional and alternative strategies with a client base of more than 2,000 firms and over 90% of the top asset managements.

Adena Friedman, CEO at the exchange, explained the combination of Nasdaq’s technology and eVestment will expand its reach to the buy-side.

“We view our partnership with eVestment as a means of strengthening Nasdaq’s support of the investment management industry through enhanced technology and service offerings,” she said.

“The investment management community is relying increasingly on independent data and advanced analytics to drive their key business decisions.

“eVestment is the definitive source from asset managers of critical fund-level and investment-level data and analytics to enable asset owners to make informed decisions,” Friedman added.

The leadership team at eVestment will join Nasdaq and the business will be integrated into Nasdaq’s global information services business.

eVestment’s chief executive officer and co-founder, Jim Minnick, added the business has grown at a 12% annual rate since 2013 and he expects this to continue as the firm taps into Nasdaq’s technology expertise.

This is the second major acquisition for Nasdaq this year, after agreeing to buy market surveillance firm Sybenetix in July.

Sybenetix will be added to Nasdaq’s risk and surveillance business, which includes SMARTS and TradeGuard, in a bid to provide improved technology and expertise to the buy-side.

Nasdaq will acquire eVestment for $705 million funded through debt and cash on hand and the deal is expected to close later this year.