St. John's, Newfoundland-based online security and anti-fraud company Verafin has agreed to be acquired by global technology giant NASDAQ for $2.75 billion U.S., the companies have announced.
In a statement, NASDAQ said the agreement between the two companies will combine Verafin's products with NASDAQ's international reach to make them a global leader "in the fight against financial crime."
Verafin, founded in 2003, works with almost 3,000 banks and credit unions in Canada and the United States to detect illegal activity such as fraud and money laundering.
The deal will see Verafin's technology made available to NASDAQ's global network of nearly 250 banks, exchanges, investing companies and regulatory authorities that rely on Nasdaq's technology to detect market manipulation and abuse, the companies said in a news release.
Verafin's headquarters will remain in St. John's, NASDAQ said, and the company's executive leadership team will also remain in place.
The deal is a vote of confidence in Newfoundland’s burgeoning technology sector. The sale is subject to regulatory approvals and is expected to close in early 2021.
Nasdaq also said that it will invest in a new $1-million U.S. research and development partnership project with the Genesis Centre, an innovation hub based at Memorial University in St. John's that provides support for start-ups in the province.
