A public announcement from Stockholm, Sweden, earlier this week has revealed that Nasdaq has made a $190 million offer for Cinnober, the Swedish crypto stock exchange software provider. Nasdaq claimed that the acquisition “would strengthen its position as one of the world’s leading market infrastructure technology providers.”
Speaking on the bid, Adena Friedman, the president and CEO of Nasdaq said that: “The combined intellectual capital, technology competence and capabilities of Cinnober and our Market Technology business will expand the breadth and depth of our fastest growing division at Nasdaq.”
“Not only have the global capital markets continued to evolve rapidly,” Ms. Friedman, 49,from Cinnober board, continued, “new marketplaces in various industries are demanding market technology infrastructure that enables rapid growth and scale as well as access to tools to promote market integrity. This acquisition will enhance our ability to serve market infrastructure operators worldwide, and will accelerate our ability to expand into new growth segments.”
Nasdaq is the second largest exchange in the world by market capitalization. It is based in New York city and valued at some $10 trillion. Nasdaq is about 50 years old and is the first electronic, automated stock market.
The emphasis of Nasdaq on digital production signifies there will be a reduction in the critical difference between the bid and ask price of a stock. It was touted as what was to come in the retail brokerage industry, and also a potential model of price discovery efficiency.
The co-founder and Chairman of the Board of Directors of Cinnober, Nils-Robert Person, added: “Since co-founding Cinnober in 1998, Cinnober has been on an exciting journey and has become a leading supplier of financial technology providing services to exchanges and trading houses worldwide.”
According to the press release on the matter, his opinion on this is that Nasdaq “has offered to acquire all outstanding shares and warrants in Cinnober at a price of SEK 75 per share and SEK 85 per warrant. The transaction represents an offer value of approximately SEK 1,702m (appr. USD 190m). The Board of Directors of Cinnober has unanimously recommended that shareholders and warrant holders accept the offer. The acceptance period of the public tender offer is expected to close during the fourth quarter of 2018, subject to certain conditions customary in Swedish public tender offers (e.g. that Nasdaq becomes owner of more than 90% of the shares in Cinnober and review by relevant competition authorities).”
“I see the offer as the next step in Cinnober’s development,” Mr. Person, 62, elaborated, “as it will enable Cinnober and its highly talented employees to be even more successful in serving customers as well as expanding its technology and offering to even more customers and segments. I really believe in the strategic logic of combining Cinnober and Nasdaq’s Market Technology business also as it reinforces the strong technology foundation in Sweden. As the largest shareholder of Cinnober, I am supportive of the offer and intend to accept the offer.”