Nasdaq to Acquire Dorsey Wright & Associates
Will Become a Leading Provider of Smart Beta Indexes With Addition of Model-Based Strategies
Acquisition Expected to be Accretive at Closing
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
"Our index business has been a strong growth area for Nasdaq over the last decade, and the acquisition of
Subject to customary conditions and approvals, Nasdaq will acquire DWA for
"Smart Beta represents one of the fastest growing sectors within the ETF market," said
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
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
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 (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
Cautionary Note Regarding Forward-Looking Statements
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
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Source: The NASDAQ OMX Group, Inc. via Globenewswire
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