The newly merged Nexi platform, including Nets and SIA, assumes Pro-forma revenues of €2.9b (approx. US$3.5b) and €1.5b (approx. US$1.8b) EBITDA on a Pro-forma aggregated basis in FY 2020E, including combined run-rate synergies of €320m (approx. US$383m) in FY 2020E. Former Nexi shareholders, Nets shareholders, and SIA shareholders will hold 48%, 31%, and 21% of the merged company, respectively.3
Nasdaq announced in November it would acquire anti-financial crime software firm Verafin. The US$2.8b all-cash deal – US$2.5b of debt and cash in hand – allows Nasdaq to expand its reach in the regulatory technology market. Verafin’s cloud-based solutions are used by more than 2,000 financial institutions in the US and Canada to detect, investigate and report money laundering and financial fraud. Nasdaq plans to provide these solutions to the 250 banks, exchanges, broker-dealers, buy-side organizations, and regulatory authorities that use its trade surveillance systems. The deal is the organization’s largest since its US$3.8b purchase of Nordic exchange, OMX, in 2008.4
The transaction reflects a trend within banks and financial firms to automate many of their more complex and expensive back-office processes to reduce costs and increase efficiencies.