Summary
Nasdaq, Inc. (NDAQ) announced on February 2, 2021, a significant strategic move involving the sale of its U.S. fixed income business (NFI) to an affiliate of Tradeweb Markets Inc. This divestiture is a key development, allowing Nasdaq to potentially streamline its operations and focus on its core strengths. The transaction is subject to customary closing conditions, including regulatory approvals, and is anticipated to close later in 2021. In conjunction with this sale, Nasdaq is accelerating the issuance of approximately 6.2 million shares of its common stock to BGC Partners, L.P. or its assignees in 2021, a contingent obligation stemming from a 2013 purchase agreement. To offset the dilutive impact of this accelerated share issuance and demonstrate confidence in its value, Nasdaq's Board of Directors has authorized an additional $1 billion under its existing share repurchase program. This brings the total authorized amount to $1.41 billion, with purchases contingent upon the closing of the NFI transaction.
Key Highlights
- 1Nasdaq is selling its U.S. fixed income business (NFI) to an affiliate of Tradeweb Markets Inc.
- 2The transaction is expected to close later in 2021, pending regulatory approvals and other conditions.
- 3Approximately 6.2 million shares of Nasdaq common stock will be issued to BGC Partners, L.P. or its assignees in 2021 due to an acceleration of a prior contingent obligation.
- 4Nasdaq's Board has authorized an additional $1 billion for share repurchases, contingent on the NFI sale closing.
- 5The total share repurchase authorization now stands at $1.41 billion.
- 6The share repurchase program may be modified or discontinued at any time and has no set expiration date.