National Association of Securities Dealers Automated Quotations (Nasdaq) created quite a buzz this week when it announced the status of its Swedish stock exchange, Cinnober. Nasdaq offered a 190 million dollar deal to the crypto-friendly exchange. If this deal is carried out then this will be the first step of Nasdaq in the world of cryptocurrency.
Nasdaq’s current President and CEO, Adena Friedman, stated that Cinnober and Nasdaq’s Market Technology business’ combination of intellectual capital, competence in technology and capabilities will lead to outstanding growth rate and expansion of Nasdaq’s fastest growing division. Ms. Friedman also said that there was a growing demand for market technology infrastructure by various industries due to the ever-evolving nature of the global capital markets. This acquisition will not only pave paths for expansion into new growth segments but will also improve Nasdaq’s market infrastructure operator serving ability all across the globe.
Nasdaq claims that this purchase would place the $10 trillion stock exchange in the list of the leading infrastructure technology providers in the market at the global level. A price of SEK 75 and SEK 85 has been offered to Cinnober for all its shares and warrants, respectively. Cinnober’s Board of Directors are in favor of this deal and recommending the offer to their shareholders and warrant holders. This public tender offer’s acceptance period will remain open till the 4th quarter of 2018.
Cinnober’s co-founder and Chairman Board of Directors, Nils-Robert Persson, said that the exchange co-founded in 1998 has come a long way and now it is now leading the market as a supplier of financial technology. Perrson expressed his sentiments regarding the offer by calling it a step for further development which will help in the expansion of Cinnober’s tech and customer segments.
Cinnober is famous for its incline towards digital assets and its partnership with Bitgo, a well-known crypto security specialist, was established in order to mitigate risks and issues associated with custodial services.