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$NDAQ 1Q15 10-Q: On Jan. 30, 2015, NDAQ completed the acquisition of Dorsey, Wright & Associates, LLC, or DWA, a market leader in data analytics, passive indexing and smart beta strategies for a purchase price of $226MM, with $225MM cash paid, plus $1MM in working capital adjustments. DWA is a part of the Information Services segment.
With 3Q17 net revenues rising 4% to $607MM, the nascent champion of stock exchanges $NDAQ saw organic growth and well as favorable forex rates in the quarter. Net attributable income jumped 30% to $171MM or $1.01 per diluted share, while adjusted EPS soared 16% to $1.06 on a diluted basis.
$NDAQ to acquire eVestment for $705MM funded through a mix of debt and cash on hand. eVestment is a content and analytics provider used by asset managers, investment consultants and asset owners to help facilitate institutional investment decisions. The deal is expected to close in 4Q17.
$NDAQ, which operates nine stock exchanges including NASDAQ stock market, posted earnings that doubled in 2Q17, as revenue climbed 8% to $602MM. Net income rose to $147MM, or $0.87 per share, from last year's $70MM, or $0.42 per share. On an adjusted basis, $NDAQ earned $1.02 per share during the quarter.
$NDAQ's stockholders elected all nominated directors at the Annual Meeting for one-year terms. The stockholders approved executive compensation on advisory basis, and ratification of appointment of Ernst & Young LLP as independent registered public accounting firm for FY17. The BoD elected Michael Splinter as Chairman of the Board.
The BoD of $NDAQ has declared a regular quarterly dividend of $0.38 per share on its outstanding common stock, an increase of 19% from the prior $0.32 per share quarterly dividend. The dividend is payable on June 30, 2017 to shareowners as on June 16, 2017.
In the Corporate Services business, $NDAQ said it will be looking at technology companies that provide a strategic benefit to $NDAQ in terms of investments it would look to do at the corporate level. Therefore going forward, it will be a more organized effort and the company will have a specific process around evaluating those opportunities.
$NDAQ said that on the outlook of interest expense, the company has the 5.25% bonds that will be redeemed and it will be replaced by the CPE program to a large degree. Also, there will be some one-time expenses that will go through as a Non-GAAP item that $NDAQ will book through the quarter in 2Q17 and will be in the $10-15MM range.
In 4Q16, $NDAQ had $584MM in non-cash write-down, which included a $578MM asset impairment charge and $7MM of other write-downs. The company had $12MM in expenses due to an accelerated recognition of certain share-based compensation expense in connection with Robert Greifeld's retirement as CEO.
As part of the business alignment actions, $NDAQ decided to end the NLX European rate futures initiative. The company will be working with its clients and partners for an orderly wind down of open positions. As of 4Q16-end, $NDAQ has achieved $38MM in realized runrate cost synergies and it believes to achieve the targeted $60MM by the end of 2017.
$NDAQ grouped Listing Services and Corporate Solutions business under one segment called Corporate Services. Also, the company now reports Marketing Technology as an independent segment. $NDAQ brought fixed income offerings together under one common brand, Nasdaq Fixed Income. This resulted in a non-cash accounting impact in 4Q16.