Nasdaq OMX Group will acquire money manager and index provider Dorsey Wright & Associates for $225 million in debt and cash.
Dorsey Wright had been majority owned by private equity manager Falfurrias Capital Partners, which had 55% of the firm, said Marc Oken, managing partner at Falfurrias. Dorsey Wright ownership held 35%, while co-investors owned the remaining 10%.
Dorsey Wright will retain its brand name.
Staff and management at Dorsey Wright will move to Nasdaq's information services segment, including index licensing and services and market data, the sources said.
With the Dorsey Wright acquisition, Nasdaq Global Index Group will have nearly $45 billion in assets benchmarked to its smart-beta index family and more than $105 billion benchmarked to all Nasdaq indexes.
Falfurrias was advised on the transaction by Wells Fargo; Bank of America advised Nasdaq.
The acquisition is expected to close in the first quarter.