Nasdaq to Buy Financial Fraud Detection Company Verafin

Cornelia Mascio
Novembre 20, 2020

Nasdaq is to acquire anti-financial crime group Verafin for $2.75 billion, accelerating the USA exchange's evolution into a Saas technology provider.

Evercore Inc. was lead financial adviser to Nasdaq, along with JPMorgan Chase & Co.

With the deal, the exchange group is doubling down on its push into the anti-money laundering software sector and furthering its strategy of repositioning the company as a leading financial technology and data vendor.

Friedman also said the deal means the buyer is "committed to supporting innovation and growth in St. John's and Newfoundland and Labrador".

Nasdaq, the US exchange that handles billions in trades daily, announced the deal in a news release Thursday morning. "Together with Nasdaq, we will be a clear leader in expanding the fight against illicit finance by delivering our capabilities to a global client base from our headquarters in St. John's".

The acquisition strengthens Nasdaq's existing regulatory technology and anti-financial crime solutions, which include its renowned Nasdaq Trade and Market Surveillance offering, its Buy-side Compliance product, as well as the Nasdaq Automated Investigator for anti-money laundering (AML). This bold step of acquiring Verafin empowers Nasdaq to play an increasingly important role in building stronger economies around the world. Verafin was advised by William Blair & Co.

"I think the story out of this is the prosperity it's gonna bring to the province...." Nasdaq will also fund and supervise at least six Mitacs fellowships annually for master's and PhD students at MUN. "Since we began discussions with Nasdaq, we felt their DNA strongly mirrored our own core values: innovation, teamwork, entrepreneurship, and a commitment to continued growth and development".

Brothers said Verafin now employs about 600 people, mostly in St. John's but some in Toronto and other offices in North America.

"Our goal, since the very early days of our business, has been to create the world's most effective crime-fighting network, and we've been on that path now for the last almost 18 years, and I think this really allows us to accelerate that vision", Brothers said.

She says they haven't brought their business anywhere outside North America yet.

Verafin has grown at a compound annual revenue growth rate of approximately 30% over the last three years.

The transaction is subject to regulatory approvals and other customary closing conditions.

Verafin was founded in 2003 and is based in St. John's.

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