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Breaking down Nasdaq’s US$2.75-billion deal for Newfoundland tech darling Verafin

Times Square in New York City in November 2020. Nasdaq CEO Adena Friedman | Twitter
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HALIFAX — Newfoundland and Labrador-based anti-financial-crime software firm Verafin has agreed to be acquired by stock-exchange operator Nasdaq in an all-cash deal valued at US$2.75 billion. 

The proposed deal comes just over a year after Verafin clocked the biggest venture funding round in Canadian history: a $515-million equity and debt recapitalization deal to help build out its product innovation and land bigger clients in the banking sector. At the time, Verafin CEO Jamie King said the windfall would allow the company—the biggest tech firm in the province—to keep growing while remaining independent. While the Nasdaq deal sees Verafin abandon the latter priority, it opens up its business—providing financial institutions with a cloud-based platform to help them detect, investigate, and report money-laundering and financial fraud—to the hundreds of firms that use Nasdaq’s financial-fraud-detection services.  

Here’s a closer look at the factors driving the deal—and who’s set to profit should the acquisition go through.

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