Exchange operator Nasdaq (NDAQ.O) said on Friday it planned to buy Swedish financial technology provider Cinnober (CINN.ST) in a deal valuing the business at around 1.7 billion crowns ($190 million).
The board of directors of Cinnober said it unanimously recommended shareholders to accept the offer of 75 crowns per share and 85 crowns per warrant.
Cinnober’s main shareholder and chairman, Nils-Robert Persson, said he intended to accept the offer, which represents a premium of roughly 22 percent to the share’s closing price of 61.50 crowns on Thursday.
Cinnober shares rose 27 percent to trade at 78 crowns in early trade on Friday.
“This acquisition will enhance our ability to serve market infrastructure operators worldwide, and will accelerate our ability to expand into new growth segments,” Nasdaq Chief Executive Adena Friedman said in a statement.
Nasdaq said it expected the acquisition to deliver significant synergies and meet the company’s 10 percent return on invested capital objective over 3-5 years, and to be accretive to non-GAAP earnings per share within 12 months of closing.
It added it would fund the acquisition with either cash on hand or existing credit facilities. The acceptance period of the offer is expected to close during the fourth quarter.