NDAQ has been outperforming the s&p 500 for nearly a decade until now. When news of the deal purchasing Adenza (formerly calypso) broke the stock tumbled to $50
NDAQ says they are pivoting toward fintech rather than just exchange operation due to narrowing margins and limited growth. Not only did they purchase Adenza but they did so at what appears to be a very expensive price. Calypso was purchased by private equity for ~3.4b in 2021. Only 2 years later it was sold once more for 10.4b
I don't understand why they waited for 5% higher interest rates to buy this company instead of outbidding the private equity firm. Makes me mistrust management. I do not like roll-up companies, if NDAQs only way to grow is buying more companies at expensive prices I'd rather look elsewhere.
What are your thoughts on Adenza, can it contribute to NDAQ in such a way that it is worth the cost of debt?
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