Nasdaq to Boost Corporate Services with Marketwired Buyout

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Nasdaq Inc. NDAQ inked a deal to buy Marketwired for an undisclosed amount in order to strengthen its position as a global corporate services provider. Pending regulatory conditions, the transaction is expected to close in the first quarter of 2016.

Marketwired is a provider of news distribution services and analytics for communications professionals, catering to more than 8,500 clients, including the Forbes 2000 companies. Adding Marketwired should benefit Nasdaq's corporate services clients with access to the market-leading social media targeting tools and analytics of the former. On the other hand, Marketwired will benefit from Nasdaq's global distribution network and its compelling end-to-end workflow solution.

In detail, with increasing importance and growth of social media channels, the combined entity will enjoy a competitive edge given Nasdaq's GlobeNewswire distribution proficiencies and work-flow platform, along with Marketwired's social media targeting and monitoring services. Also, this deal gives an opportunity to Nasdaq's Corporate Solutions business to enhance its portfolio of services that includes news distribution, media research, social media and analytics among others as well as secure its dominance in North America, particularly Canada.

The acquisition will be accretive to Nasdaq's operating net earnings within a year of closing. However, the deal will have no impact on Nasdaq's financial leverage or capital return strategy. Nasdaq will deploy its cash in hand and debt to fund the acquisition.

Nasdaq has been prudently expanding its portfolio with the help of strategic acquisitions. On Feb 1, the company acquired Chi-X Canada, an Alternative Trading System for the Toronto Stock Exchange ("TSX") and TSX Venture Securities, from Chi-X Global to access the Canadian equities market. In Oct 2015, Nasdaq had acquired SecondMarkets Solutions to improve the liquidity postion of the securities run by private companies.

Moreover, Nasdaq continues to provide quality technology to the world's competitive and demanding capital markets. Its various technology services contribute to growth as the industry is becoming more focused on up-to-date solutions to effectively manage risk.

Nasdaq presently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the sector include CME Group CME, American Capital, Ltd. ACAS and Atlantic Coast Financial Corporation ACFC. While American Capital presently sports a Zacks Rank #1 (Strong Buy), CME Group and Atlantic Coast Financial carry a Zacks Rank #2 (Buy).

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