Nasdaq to acquire Verafin for $2.75 billion

Nasdaq is going to acquire anti-financial crime group Verafi for $2.75 billion, accelerating the US exchange's evolution into a Saas technology provider. Verafin provides to more than 2,000 financial institutions in North America a cloud-based platform to help detect, investigate, and report money laundering and financial fraud. Verafin’s innovative fraud and AML detection platform, combined with Nasdaq’s leading trade and market surveillance solution, will empower Nasdaq to play an increasingly important role in building stronger economies around the world.

 
With the deal, the exchange group is doubling down on its push into the anti-money laundering software sector and furthering its strategy of repositioning the company as a leading financial technology and data vendor.
 
It has a strong foothold in the trade surveillance software market, as well as in the trading technology systems sector. It made its first move in the anti-money laundering software market in September when it launched artificial intelligence technology to help retail and commercial banks automate investigations.
 
Valerie Bannert-Thurner, Senior Vice President and Head of Sell-Side and Buy-Side Solutions, Market Technology at Nasdaq, said, "The problem of detecting money laundering and fraud hasn't been solved very well yet. With our acquisition we are doubling down on our belief this as an area that is being disrupted and where we can have a big impact."
 
Nasdaq's push comes as banks and other financial firms look to automate many of their more expensive and complex back office processes to reduce costs and increase efficiency.
 
This includes compliance and surveillance functions, where costs have been growing significantly following tougher regulatory crackdowns over the past decade.
 
The acquisition marks another milestone in Nasdaq's effort to diversify its revenue stream away from trading, where fees have been declining, into areas such as technology and data.