Nasdaq To Acquire Cinnober For About $190 Mln

( - Nasdaq ( NDAQ ) said Friday that it has made an $190 million all cash recommended public offer to the shareholders and warrant holders of Cinnober, a major Swedish financial technology provider to brokers, exchanges and clearinghouses worldwide.

Nasdaq said it expects to acquire Cinnober through a recommended public cash offer that was launched today whereby Nasdaq, through a wholly owned subsidiary, has offered to acquire all outstanding shares and warrants in Cinnober at a price of 75 Swedish kronor per share and 85 kronor per warrant. The transaction represents an offer value of about 1.702 billion kronor or $190 million.

Nasdaq expects the transaction to meet the company's 10% 3-5 year ROIC objective, and to be accretive to non-GAAP earnings per share within 12 months of closing.

Nasdaq said it will fund the acquisition with either cash on hand or liquidity available under existing credit facilities, and remains committed to the existing capital deployment priorities, including funding attractive organic investment opportunities, continuing its dividend growth and share repurchase objectives, as well as achieving a "mid-2x's" gross debt to EBITDA ratio by mid-2019.

The Board of Directors of Cinnober has unanimously recommended that shareholders and warrant holders accept the offer. The acceptance period of the public tender offer is expected to close during the fourth quarter of 2018, subject to certain conditions customary in Swedish public tender offers.

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