Nasdaq to Acquire Dorsey Wright & Associates
(Thomson Reuters ONE) -
Will Become a Leading Provider of Smart Beta Indexes With Addition of Model-
Based Strategies
Acquisition Expected to be Accretive at Closing
NEW YORK, Jan. 5, 2015 (GLOBE NEWSWIRE) -- Nasdaq (Nasdaq:NDAQ) today announced
that it will acquire Dorsey, Wright & Associates, LLC (DWA), a market leader in
data analytics, passive indexing and smart beta strategies. DWA will add to
Nasdaq's robust index portfolio, bringing model-based strategies and analysis to
support the financial advisor community, and further strengthening Nasdaq's
position as a leading smart beta index provider in the U.S. The deal is expected
to close in the first quarter of 2015.
DWA will increase Nasdaq's capacity for growth in the index business across
asset classes and geographies, with substantial opportunities in index
licensing. The combined group will bring together DWA's 17 ETFs and Nasdaq's 69
licensed smart-beta ETFs focused primarily on dividend and income strategies. As
a result, Nasdaq Global Indexes will become one of the largest providers of
smart beta indexes with nearly $45 billion in assets benchmarked to its family
of Smart Beta indexes and more than $105 billion benchmarked to all Nasdaq
Indexes.
"Our index business has been a strong growth area for Nasdaq over the last
decade, and the acquisition of Dorsey Wright & Associates will further cement
our position as a major player and industry innovator," said Adena Friedman,
President of Nasdaq. "We are always looking for opportunities to expand Nasdaq's
index offering with quality products that deepen our relationships with the
investing community. DWA provides a natural complement to our business and
growth strategy."
Subject to customary conditions and approvals, Nasdaq will acquire DWA for $225
million funded through a mix of debt and cash on hand. Nasdaq expects the
acquisition will be accretive to the company's earnings at closing, excluding
transaction-related costs, and does not expect a material impact on Nasdaq's
financial leverage or capital return strategy. The acquisition will further
support the company's efforts to deliver consistent and stable returns to
shareholders.
"Smart Beta represents one of the fastest growing sectors within the ETF
market," said Tom Dorsey, President, Dorsey Wright & Associates. "This deal will
allow us to grow significantly, while continuing to create products and
strategies that meet the needs of our clients."
Nasdaq intends to fuel DWA's growth strategy by accelerating product
development, raising awareness of the DWA indexes and increasing the base of
potential market participants through its global distribution network. Nasdaq's
ability to create innovative indexes, its long-term relationships with ETF
providers, and DWA's analytical capabilities and smart-beta models are expected
to lead to new products in more asset classes, including fixed income,
currencies and commodities, and facilitate international expansion of the DWA
offerings, beginning in Canada and Europe.
Additionally, there are opportunities for Nasdaq technology to enhance DWA's
web-based advisor tools used to deliver DWA's methodology into tactical asset
allocation models. The enhancements will create more opportunities for financial
advisors as the market continues to move toward model-based investing.
Historically, Nasdaq has a proven ability to bolster acquired companies' index
businesses by leveraging its distribution, technology and product generation
capabilities. This is best exemplified by the acquisition of the index business
of Mergent in 2012. In the two years since the deal was completed, the index
business of Mergent has over-achieved its business targets and returns,
resulting in licensed asset growth of 100 percent.
Friedman concluded, "We intend to integrate the DWA team with our broader Nasdaq
organization, leveraging DWA's research expertise and deep relationships with
the financial advisor community, and we expect to generate revenue synergies by
deepening DWA's licensing relationships with the ETF sponsor community
globally."
About Nasdaq Global Information Services
Nasdaq Global Information Services (GIS) leverages reliable, scalable technology
and robust distribution channels to provide comprehensive benchmarks and market
data solutions across asset classes and regions. We equip financial institutions
and investors with essential market transparency to make informed decisions. Our
Global Data Products (GDP) provide innovative real-time and historical market
data products, as well as analytic data solutions designed to meet new industry
challenges. In addition, Nasdaq Global Index Group (GIG) spans geographies and
asset classes to support financial product sponsors across a wide-spectrum of
investable products and asset managers that measure risk and performance. Our
diverse families include the Dividend Achievers, Global Equity, Fixed Income,
Nordic, Green Economy, Sharia and Commodity Indexes, based upon rules-based,
transparent methodologies.
About Nasdaq
Nasdaq (Nasdaq:NDAQ) is a leading provider of trading, exchange technology,
information and public company services across six continents. Through its
diverse portfolio of solutions, Nasdaq enables customers to plan, optimize and
execute their business vision with confidence, using proven technologies that
provide transparency and insight for navigating today's global capital markets.
As the creator of the world's first electronic stock market, its technology
powers more than 70 marketplaces in 50 countries, and 1 in 10 of the world's
securities transactions. Nasdaq is home to more than 3,500 listed companies with
a market value of over $8.8 trillion and more than 10,000 corporate clients. To
learn more, visit www.nasdaq.com/ambition or business.nasdaq.com
About Dorsey, Wright & Associates
Dorsey, Wright & Associates (DWA) is an independent and privately owned
registered investment advisory firm based in Richmond, Virginia. Since its
founding in 1987 by Tom Dorsey and Watson Wright, Dorsey Wright has been a
leading advisor to Wall Street and investment managers worldwide. Dorsey Wright
provides three essential services for clients: comprehensive investment research
and analysis, professional money management for financial advisors and
individuals, and sub-advisory and licensing services to mutual funds and ETF
providers. For more information, visit www.dorseywright.com.
Cautionary Note Regarding Forward-Looking Statements
The matters described herein contain forward-looking statements that are made
under the Safe Harbor provisions of the Private Securities Litigation Reform Act
of 1995. These statements include, but are not limited to, statements about the
acquisition of Dorsey Wright & Associates and Nasdaq's products and offerings.
We caution that these statements are not guarantees of future performance.
Actual results may differ materially from those expressed or implied in the
forward-looking statements. Forward-looking statements involve a number of
risks, uncertainties or other factors beyond Nasdaq's control. These factors
include, but are not limited to factors detailed in Nasdaq's annual report on
Form 10-K, and periodic reports filed with the U.S. Securities and Exchange
Commission. We undertake no obligation to release any revisions to any forward-
looking statements.
NDAQG
CONTACT: Joe Christinat
Nasdaq Communications
646 441 5121
joseph.christinat(at)nasdaq.com
Ed Ditmire
Nasdaq Investor Relations
212 401 8737
ed.ditmire(at)nasdaq.com
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: The NASDAQ OMX Group, Inc. via GlobeNewswire
[HUG#1884258]
Unternehmensinformation / Kurzprofil:
Datum: 05.01.2015 - 14:00 Uhr
Sprache: Deutsch
News-ID 362261
Anzahl Zeichen: 9039
contact information:
Town:
New York
Kategorie:
Business News
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