(Reuters) – Nasdaq announced on Friday that private equity firm Thoma Bravo is planning to sell 41.6 million shares in the transatlantic exchange operator through a secondary public offering. This news caused Nasdaq shares to drop by 2.8% after the market closed.
In a significant move last year, Nasdaq acquired fintech firm Adenza from Thoma Bravo in a $10.5 billion cash-and-stock deal, giving the private equity firm a substantial stake in the exchange operator.
Based on Nasdaq’s closing price, the offering is expected to generate $2.79 billion for Thoma Bravo, reducing its stake to 7.4% or 42.8 million shares. Thoma Bravo currently holds a nearly 14.9% stake in Nasdaq, making it the fifth-largest shareholder in the exchange.
Thoma Bravo’s remaining shares in Nasdaq will be under an existing contractual lock-up until May 1, 2025. Analysts believe that the sale of Thoma Bravo-held Nasdaq shares could positively impact the market by alleviating pressure on the stock.
Nasdaq has also agreed to repurchase 1.2 million shares from Thoma Bravo, with a cap of $120 million. The exchange plans to fund this repurchase through its available cash and borrowings under its commercial paper program.
Earlier this year, Borse Dubai reduced its stake in Nasdaq, allowing Thoma Bravo to become the largest shareholder. However, upon the completion of the offering, Borse Dubai is set to reclaim its position as Nasdaq’s top shareholder. Goldman Sachs has been appointed as the sole book-running manager for the offering.
