US exchange operator Nasdaq has agreed to take over eVestment, a content and analytics provider used by asset managers, investment consultants and asset owners, in a $705m deal.
The transaction is expected to be completed in the final quarter of 2017, subject to customary approvals.
Nasdaq president and CEO Adena Friedman said: “The strategic alignment of eVestment with Nasdaq’s complementary technology and services to the global institutional investment industry, including our surveillance technology, SMARTS, our recent Analytics Hub launch, as well as our long standing operation of the Mutual Fund Quotation Service, will further expand our buy side relationships, accelerate our growth opportunities, and advance our objectives to deliver proprietary analytics to our clients.”
Nasdaq said it will finance the deal through debt and cash on hand and expects the purchase to offer “attractive” returns on capital.
eVestment CEO and co-founder Jim Minnick added: “Our leadership team is excited to join Nasdaq. We believe the combined organization will allow us to grow our core business while tapping into Nasdaq’s technology expertise, leading data and software products, and global distribution.”
eVestment has a client base of over 2,000 that includes 92% of the top asset managers, 76% of top consulting firms and 80% of the top 20 pension funds.