In order to expand global services for its issuer community,
) entered into a definitive agreement to acquire Phoenix-based
consulting service provider Corpedia Corporation. The deal, terms
still undisclosed, is expected to close next month.
With the acquisition of Corpedia, which provides ethics and
compliance e-learning and consultative services, NYSE will be able
to provide its customers access to innovative products and improved
services. Corpedia will not only assist the company with its
expertise but also by offering enterprise governance, risk and
compliance assets ("GRC").
NYSE's issuer community will also benefit from a wide range of
value added services of Corpedia and will also seek to improve the
service platform of the company. The strategic alliance
between the two is expected to be mutually beneficial as Corpedia
will now serve the companies listed on NYSE as well.
Competing on similar lines NYSE's arch rival
Nasdaq OMX Group Inc
) announced the acquisition of BWise, a competitor of Corpedia and
the provider of GRC software, early this month.
Nasdaq intends to make these solutions available through NASDAQ
Corporate Solutions' software technology business. This in turn
complements and boosts NASDAQ's SMART technology that is also a
surveillance and compliance monitoring platform for brokers,
exchanges and regulators.
On a closer look, we observe that NYSE's decision to acquire
Corpedia is in line with its strategy to expand its services
worldwide. The company continues to grow through mergers,
acquisitions and alliances.
NYSE currently retains a Zacks #3 Rank, which translates into a
short-term Hold rating. We also retain a long term Neutral
recommendation on its shares.
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