NEW YORK - Nasdaq, Inc. (NASDAQ:NDAQ), a global technology company serving the financial industry, has announced the pricing of a secondary public offering by Argus Seller, LP, an affiliate of Thoma Bravo, L.P. The offering, which is expected to close tomorrow, involves 41,604,207 shares of Nasdaq's common stock priced at $65.30 each.
Nasdaq itself is not selling any shares and will not receive proceeds from the Selling Stockholder's offering. Concurrently, Nasdaq has entered into a share repurchase agreement with the Selling Stockholder. This agreement, set on Thursday, involves Nasdaq's repurchase of 1,200,000 shares as part of its ongoing share repurchase program, intended to mitigate employee dilution.
The repurchase will be funded through Nasdaq's available cash and borrowings under its commercial paper program. Notably, the underwriter will receive no compensation for the shares repurchased by Nasdaq.
Following the completion of both the secondary offering and the repurchase, the Selling Stockholder will retain approximately 7.4% of Nasdaq's outstanding shares, amounting to 42,804,207 shares. These shares will remain under a lock-up agreement until May 1, 2025.
Goldman Sachs & Co. LLC is the sole book-running manager for the offering. Interested investors are directed to the prospectus included in Nasdaq's registration statement filed with the U.S. Securities and Exchange Commission (SEC), available on the SEC's EDGAR system or upon request from Goldman Sachs & Co. LLC.
Nasdaq's business spans data, analytics, software, exchange capabilities, and client services, aiming to enhance global economic liquidity, transparency, and integrity. The company has cautioned that forward-looking statements in the press release involve risks and uncertainties that could cause actual results to differ from those projected.
This news article is based on a press release statement from Nasdaq, Inc.
In other recent news, Nasdaq disclosed significant developments including a secondary public offering of its shares and a robust financial performance. Thoma Bravo, a private equity firm, is set to sell 41.6 million of its shares in Nasdaq through a secondary public offering, generating approximately $2.79 billion.
Concurrently, Nasdaq has entered into a share repurchase agreement, planning to buy back 1,200,000 shares of its common stock, not to exceed $120 million. Goldman Sachs is overseeing the process of the share sale.
In financial performance, Nasdaq reported a 10% increase in net revenues, reaching $1.2 billion, and a 7% rise in annualized recurring revenue (ARR) to $2.7 billion. The Financial Technology division and capital access platforms significantly contributed to this growth. The company's integration of the Adenza acquisition is ahead of schedule, and deleveraging efforts are noteworthy, with a reduction of $174 million in commercial paper.
Moving forward, Nasdaq expects full-year revenue growth for capital access platforms to exceed the medium-term outlook and is on track to exceed $100 million in FinTech cross-sells by the end of 2027. These are among the recent developments for Nasdaq.
InvestingPro Insights
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With a solid market capitalization of $38.56 billion and a P/E ratio of 38.57, the company stands as a significant player in the financial technology sector. The adjusted P/E ratio for the last twelve months as of Q2 2024 is 34.25, reflecting a premium valuation that the market is willing to pay for its earnings.
InvestingPro Tips suggest that Nasdaq has a track record of raising its dividend for 12 consecutive years, indicating a commitment to returning value to shareholders. Moreover, the company has maintained dividend payments for 13 consecutive years, with a dividend yield of 1.43% as of the middle of 2024. This consistency is a positive signal for income-focused investors. The company's shares are trading near their 52-week high, with the price at 98.8% of the peak, which could be indicative of strong market confidence.
On the analyst front, 8 analysts have revised their earnings projections upwards for the upcoming period, suggesting that there might be more optimism surrounding the company's financial performance. Still, it is also noted that the stock is currently in overbought territory according to the RSI, which could imply that some caution is warranted.
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