NEW YORK - Nasdaq Inc. (NASDAQ:NDAQ) disclosed today a secondary public offering of 41,604,207 shares of its common stock, held by Argus Seller, LP, an affiliate of Thoma Bravo, L.P. funds. The technology and financial services provider, which operates multiple stock exchanges, clarified that no new shares are being sold by the company itself; therefore, it will not receive any proceeds from this transaction.
In a concurrent move, on Thursday, Nasdaq entered into a share repurchase agreement with the Selling Stockholder, contingent on the secondary offering. Under this agreement, Nasdaq will buy back 1,200,000 shares of its common stock, with the total repurchase amount not to exceed $120 million. This repurchase is part of an ongoing share buyback initiative aimed at mitigating dilution from employee stock plans. The company plans to finance this repurchase with its existing cash and potential borrowings under its commercial paper program.
Goldman Sachs & Co. LLC is serving as the sole book-running manager for the offering. Post-offering and repurchase, the Selling Stockholder is expected to retain about 7.4% of Nasdaq's outstanding shares, which are under a lock-up agreement until May 1, 2025.
The offering is detailed in a registration statement filed with the U.S. Securities and Exchange Commission (SEC), where prospective investors can access more comprehensive information about Nasdaq and the offering. Documents filed with the SEC are available on the SEC's website, and physical copies can be requested from Goldman Sachs & Co. LLC's Prospectus Department in New York.
Nasdaq's announcement comes with the usual caveats regarding forward-looking statements, underscoring the potential risks and uncertainties that could affect the actual outcomes of the offering and repurchase plan. The company's future plans and financial performance may be influenced by market conditions, regulatory changes, and competitive dynamics, among other factors.
This press release is based on a press release statement and contains no offer to sell or solicitation of an offer to buy the securities described herein.
In other recent news, Nasdaq showcased a robust financial performance in the second quarter of 2024. The company reported a 10% increase in net revenues, reaching $1.2 billion, and a 7% rise in annualized recurring revenue (ARR) to $2.7 billion. There was also a notable 13% growth in solutions revenues.
Both the Financial Technology division and capital access platforms played a significant role in driving revenue growth, with respective increases of 16% and 10%. Furthermore, Nasdaq's integration of the Adenza acquisition is progressing ahead of schedule. The company's deleveraging efforts are also noteworthy, with a reduction of $174 million in commercial paper.
The company outlook suggests revenue growth for capital access platforms will surpass the medium-term outlook. Additionally, the company is on track to exceed $100 million in FinTech cross-sells by the end of 2027. Nasdaq's AI order type led to a 20% increase in volumes and improved fill rates, indicating strong potential for future growth. These are among the latest developments for Nasdaq.
InvestingPro Insights
Nasdaq Inc. (NASDAQ:NDAQ) has been demonstrating financial resilience and investor confidence, as indicated by several metrics and InvestingPro Tips. A notable achievement for the company is its consistent dividend growth, having raised its dividend for 12 consecutive years. The commitment to returning value to shareholders is further evidenced by the company's recent share repurchase agreement, which is part of a broader strategy to manage dilution and enhance shareholder value.
InvestingPro Data reveals that Nasdaq's market capitalization stands at a robust 38.56 billion USD, with a Price/Earnings (P/E) ratio of 38.57, suggesting a strong investor valuation of the company's earnings. Additionally, the company has experienced a 7.57% revenue growth over the last twelve months as of Q2 2024, reflecting its operational success despite a competitive and dynamic market environment.
Investors may also find it encouraging that Nasdaq's stock has delivered a significant return over the past week, with a 7.6% price total return. This performance aligns with the broader trend of strong returns over the last month and year, highlighting the stock's positive momentum in the market.
For those looking to delve deeper into Nasdaq's financials and performance, there are additional InvestingPro Tips available, including insights into earnings revisions by analysts and the stock's trading patterns. Interested readers can access a wealth of expert analysis and tips on Nasdaq by visiting InvestingPro. Moreover, users can benefit from a special offer using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking even more valuable insights to inform their investment decisions.
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