Nasdaq divests GlobeNewswire to concentrate on analytics business
Nasdaq Inc. (Nasdaq: NDAQ) has agreed to sell its public relations and web hosting businesses to West Corp. for $335 million. The deal is part of Nasdaq's strategy to focus on the company's data and analytics services. In 2017, Nasdaq paid $705 million for eVestment.
The businesses being sold include press release distributor GlobeNewswire, web hosting and multimedia providers Webhosting and and Webcasting, along with media monitor Media intelligence. As part of the deal, Omaha, Nebraska-based West and Nasdaq have agreed to a partnership to continue to provide certain Nasdaq customers access to the products that are exchanging hands.
"This strategic decision will allow us to focus our efforts on strengthening technology, data and analytics capabilities within our core investor relations and board collaboration solutions, which are an important component of Nasdaq's relationships with its corporate clients," says Stacie Swanstorm, the executive vice president of Nasdaq corporate solutions.
Data providers for retailers are in great demand, and they have become valuable acquisition targets, particularly among strategic buyers. For example, ION acquired a majority stake in Dealogic; Morningstar Inc. purchased an 80 percent stake in Pitchbook; and Broadridge Financial Solutions Inc. (NYSE: BR) agreed to acquire Morningstar Inc.’s 15(c) board consulting services business.
West is a communications technology company that helps businesses with voice and data services. The company serves a number of sectors including telelcome, consumer, financial services, healthcare and transportation.
Credit Suisse, LionTree are advising West, which is being represented by Watchtell Lipton Rosen & Katz along Paul Weiss Rifkind Wharton & Garrison. Evercore Inc. (NYSE: EVR). Skadden Arps Slate Meagher & Flom, Baker McKenzie and Jones Day are advising Nasdaq.