Nasdaq Inc., the New York City-based world’s No. 2 stock exchange operator by market valuation, had issued a statement on Thursday saying that it had been brewing off an option to purchase a Canadian financial fraud detection firm Verafin at a $2.75 billion all-cash buyout deal, suggesting an exponential expansion of Nasdaq’s grasp in regulatory technology market.
In point of fact, Nasdaq was also quoted saying in the statement that the takeover deal was aimed to capitalize Verafin’s anti-financial corruption detection software on 250 lenders, stock exchanges, brokerage firms, regulatory authorities and buy-side entities, which had been using its surveillance system, while Verafin’s cloud-based platform would help the aforementioned entities detect, investigate and report money laundering alongside financial fraudulences.
Nasdaq looks to double down its push on money laundering software
In tandem, industry analysts said following announcement of the deal that the takeover would step up Nasdaq Inc.’s effort to push further into the anti-money laundering software market while repositioning itself as a leading fintech firm alongside data vendor.
On top of that, despite its strong footprint over the global trade surveillance market alongside trading technology units, Nasdaq Inc., a leader in market technology provider to lenders and other financial entities apart from its operating stock exchanges in the United States, had made its first move to whack out money laundering software market in September this year when it had rolled out an artificial technology in a bid to assist commercial and retail lenders in automation of their financial investigations.
Meanwhile, since the latest Nasdaq move largely coincided with a flurry of financial entities’ push for automation of their financial investigation aimed at reducing expenses and enhancing efficiency, citing a through-and-through optimism over the Verafin acquisition deal, senior Vice President and head of sell-side and buy-side solutions alongside market technology in Nasdaq, Valerie Bannert-Thurner said in an interview with the reports shortly after the announcement, “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. ”