Nasdaq is buying eVestment for $705 million in a deal that will expand its reach among buy-side investors.
EVestment, a data and analytics provider for the asset management industry, has more than 2,000 clients, including 92 percent of the top asset managers, 76 percent of the top consulting firms and 80 percent of the top 20 pension funds, according to a statement Tuesday by Nasdaq. The firm will fund the deal through a mix of debt and cash on hand.
The investment management community is relying increasingly on independent data and advanced analytics to drive their key business decisions, including asset allocation and investment choices, Adena Friedman, Nasdaq president and CEO, said in the statement.
The deal will help eVestment, which has seen a 12 percent annual growth rate since 2013, provide its clients with new and expanded product offerings, according to Jim Minnick, the firms chief executive officer and co-founder.
The combined organization will allow us to grow our core business while tapping into Nasdaqs technology expertise, leading data and software products, and global distribution, Minnick said in the statement.
The deal is expected to be completed in the fourth quarter.