The provider of content and analytics for wealth and asset managers is to have a new owner.

US markets group Nasdaq is to buy eVestment, the content and analytics provider used by the wealth and investment management industry.

Subject to customary conditions and approvals, Nasdaq will acquire eVestment for $705 million funded through a mix of debt and cash on hand.  The deal is expected to close in the fourth quarter of 2017, it said in a statement yesterday.  Nasdaq said the acquisition supports its ambition to “deliver double-digit shareholder returns to shareholders”. 

Nasdaq said it intends to cut leverage towards its long-term targets for the ratio of debt to earnings before interest, taxation, depreciation and amortization.

“The acquisition is expected to deliver attractive shareholder returns with a combination of recurring, predictable revenue, a strong track record of growth and attractive cash flow dynamics,” Nasdaq said.

eVestment provides institutional investors with data about both traditional and alternative investment strategies, including 2,800 individual data points on more than 74,000 investment vehicles. The firm has more than 2,000 clients.

“We’ve grown this business at a 13 per cent annual growth rate since 2013, and together, we expect to produce new and expanded opportunities for our clients by combining our proprietary capabilities with Nasdaq’s core information services offerings,” Jim Minnick, chief executive and co-founder, eVestment, said.