Nasdaq to Buy Marketwired
February 12 2016 - 10:30AM
Dow Jones News
Nasdaq Inc. said it would buy news release distributor
Marketwired for an undisclosed price.
Marketwired, which distributes news releases and economic data
to investors and media companies, has been owned by OMERS Private
Equity, the private equity arm of one of Canada's largest pension
funds, since 2006.
Nasdaq, which is known primarily for its eponymous electronic
stock exchange, has been expanding into more business services such
as investor relations management. In October the exchange operator
acquired SecondMarket Solutions Inc., a company that helped private
companies facilitate trading of their shares.
In a release, Nasdaq said its clients will benefit from
Marketwire's social media tools and analytics. "As our clients'
needs continue to expand, we will be well-positioned to offer new
tools, content, and services to meet their evolving IR and PR
challenges and opportunities," said Adena Friedman, Nasdaq's chief
operating officer, referring to investor relations and public
relations.
The deal is expected to add to adjusted earnings within a year
of closing, which is expected in the first quarter.
The Toronto, Canada-based Marketwired and other competing wires
such as Berkshire Hathaway Inc.'s Business Wire were allegedly
hacked and unreleased information was used facilitate illicit
trades. Nine people were charged for the scheme in August.
News release wires have come under scrutiny for their
relationships with high-frequency traders. In 2014 Marketwired
signed a deal with New York Attorney General Eric Schneiderman to
stop providing the releases directly to high-frequency traders.
Nasdaq shares rose 1.5% to $60.87 in morning trading.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
February 12, 2016 11:15 ET (16:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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