Nasdaq buys eVestment for $705 million

U.S. exchange operator Nasdaq Inc said on Tuesday it will buy an investment analysis provider, eVestment Alliance LLC, for US$705 million to expand its business reach and improve its data services business. eVestment is a cloud-based service that helps institutions monitor market trends and make investment decisions.

Tinuku Nasdaq buys eVestment for $705 million

The Nasdaq said it would use a cash and debt scheme to buy eVestment. Market content data will provide information to investors to make better investment decisions. Revenue from the business rose 7.5 percent in the second quarter ended June.

The stock market operator has diversified over the last few decades as profitability in trading equities has shrunk as regulatory changes and competition are rising. Nasdaq's President and CEO, Adena Friedman, has repeatedly signaled data and technology as a focus and growth area for the Nasdaq.

"This is an evolution of our strategy. Clients' needs are growing rapidly with available data and technological advances.There are many new strategies available and more data and analysis are needed to make investment decisions," Friedman said.

Investors are Nasdaq customers along with stock issuers, brokers and other stock exchanges. eVestment runs a database on traditional and alternative investment strategies covering as many as 2,800 individual data on over 74,000 investments for sale to investment managers, consulting firms and pension funds.

eVestment was founded by Jim Minnick, Heath Wilson, Karen Minnick and Matt Crisp in 2000 in Atlanta.