Nasdaq has agreed to acquire Dorsey Wright, a US index provider and analytics group from Falfurrias Capital Partners for $225m to expand its presence into indexing and the exchange traded funds market.
The deal is part of Nasdaq’s strategy to diversify its business. The acquisition of Dorsey Wright will add about $5bn of licensed ETF assets to Nasdaq, which it expects to boost further by using its reach and relationships, reported Financial Times.
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However, the acquisition will not impact leverage or Nasdaq’s capital return plans.
Adena Friedman, president of global capital access, technology and insights at Nasdaq, said: "Assets under management tracking indices are growing at 13% overall. Smart beta growing is at 24%. In our opinion, the next phase in index investment will be from straight passive management to smart beta.
"The Dorsey Wright purchase is very easy to digest, very easy to integrate," she added.
Exchanges have been partnering with index providers as licensing of data provides new sources of growth.
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