July 27, 2010

Nasdaq OMX Group has agreed to acquire SMARTS Group, a leading technology provider of market surveillance solutions to exchanges, regulators and brokers.

The acquisition is part of Nasdaq OMX’s strategy to diversify its commercial technology business and enter the broker surveillance and compliance market. SMARTS will be part of the Nasdaq OMX Market Technology business, which delivers technology to over 50 marketplaces in over 50 countries

Under terms of the agreement, Nasdaq OMX will acquire 100 percent of the shares in privately held SMARTS Group Holdings. The transaction is slated for conclusion within Q3 2010. Financial tersm of the deal were not disclosed. Marlin & Associates acted as exclusive financial and strategic advisor to SMARTS.

In a statement, Anna Ewing, Chief Information Officer of NASDAQ OMX, commented, "The acquisition of SMARTS is a strategic fit with NASDAQ OMX's commercial technology business. Efficient surveillance operations are imperative to ensure integrity in today's financial markets, and SMARTS allows us to capitalize on the growing demand for surveillance technology products in exchange, regulator and broker markets worldwide. We are also excited about expanding our presence in Australia and look forward to leveraging SMARTS' center of excellence and innovation in the region."

Dr. Andreas Furche, CEO of SMARTS Group Holdings, commented in the release: “Being part of NASDAQ OMX provides enormous growth opportunities for SMARTS surveillance technologies and provides us with the direct connection to the U.S. markets that we have been seeking. Moreover, the SMARTS customer base will benefit from the added confidence of working with a world-leading company that has a similar customer base and therefore understands the business and requirements of SMARTS' customers."

SMARTS Group is an Australian-based financial technology company with over 30 national exchange and regulatory customers as well as 50 banking firm clients in more than 30 countries.

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Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in ...