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Deal Maker of the Year Awards 2013
USA
WINNER - JONATHAN WORRALL DEAL: NASDAQ OMX acquires Mergent’s Index Business
NAME: Jonathan Worrall COMPANY: Mergent, Inc WEBSITE: www.mergent.com
DEAL OVERVIEW Q
Please summarise the transaction
Mergent sold to NASDAQ OMX its Index Calculation Business, Indxis Limited, along with certain Index-related assets of Mergent, Inc.,
incorporating the highly successful
Dividend Achievers Series of Indices that are the basis for the largest Dividend-related Index Funds in the North American marketplace.
Q
What was your role within the transaction
As Chief Executive Officer of Mergent, Inc., I led the decision process, the sales negotiation and the transition team.
Q difficulties presented What were the challenges
who, of course, initiated the transaction. That can be a significant challenge. For example, you can agree in detail what the liabilities are associated with the business with one team only for a separate team to come back in the final moments and query why the operation needs data that is in fact essential to the business.
Q
How were the challenges or difficulties overcome
As often happens, the challenges were met through a process of detailed education in the business aided by the transfer of key staff to the purchaser and of course a level of compromise.
or Q
NASDAQ OMX is a large, International Exchange-based business with a large team of in-house counsel and runs a sophisticated acquisition process that is managed by a team not directly related to operations. Therefore, the process required us to adopt a modus operendi where it was necessary to work through these teams and to educate them into the business and the opportunity before we could address directly the operational team
How does the transaction fit in with your overall business strategy
It became clear after the Financial Crisis that to be successful in the Index Calculation business there is an acceptance that consolidation with the larger Stock Exchanges is inevitable. Equally, you need a large well-known brand in order to successfully market investable products. The Index business had become a distraction diverting management resources that were not justified by the return or the forward growth prospects.
Q
What are your plans following the transaction
By selling our Index business at this juncture it allows us to refocus on our core Data business, to invest in new added value product and our employees for the benefit of our core customer base.
What are your thoughts and predictions within your sector for 2014 and beyond
Q
2013 has been the first year of relative ‘normality’ since the Financial Crisis for our core business which has allowed us to release a series of new products in our primary markets. This has allowed us to achieve solid growth which I expect to accelerate as we move into 2014 and beyond. The Government Shutdown in the US had little direct effect on our business, rather the continued deadlock in Washington, and is beginning to look positive for business and the markets as the Government’s inability to create new taxes or regulation that might interfere with progress turns into a major positive. This combination of circumstance allows for us to be very optimistic about 2014 and our ability to execute on the mission to the benefit of our shareholders.