Nasdaq buys Canadian fraud-detection company for $2.75 bn

Nasdaq announced a $2.75 billion acquisition of Canadian fraud-detection company Verafin
Nasdaq announced a $2.75 billion acquisition of Canadian fraud-detection company Verafin

Nasdaq agreed to acquire Verafin, a Canadian financial fraud-detection company, for $2.75 billion, the companies announced Thursday.

Verafin, founded in 2003 in St. John's, Newfoundland and Labrador, employs machine learning, and other tools to detect money laundering and fraud. The company's cloud-based products currently serve more than 2,000 banks and credit unions in North America.

Nasdaq said the transaction would strengthen its efforts to eradicate financial crime and . It cited a United Nations estimate that there are up to $2 trillion in laundered money flows per year.

"At the core of Nasdaq's mission, we champion fairness and integrity in the markets that we build and in the broader financial ecosystem in which we operate," said Nasdaq Chief Executive Adena Friedman. "Combatting financial crime is central to achieving our goals."

Besides strengthening Nasdaq's system integrity, the transaction will boost the exchange's software offerings to clients, Friedman said.

Nasdaq plans to keep Verafin's headquarters in St. John's and will support technology investment in the region, including funding a fellowship program at Memorial University, the companies said in a press release.


Explore further

Astronauts ring opening bell for Nasdaq from space station

© 2020 AFP

Citation: Nasdaq buys Canadian fraud-detection company for $2.75 bn (2020, November 19) retrieved 23 November 2020 from https://techxplore.com/news/2020-11-nasdaq-canadian-fraud-detection-company-bn.html
This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only.
5 shares

Feedback to editors

User comments