Nasdaq has acquired SecondMarket Solutions, a New York software-as-a-service provider that focuses on helping companies prepare for an IPO.
Nasdaq said it will integrate SecondMarket into its Nasdaq Private Market subsidiary, which is based in San Francisco. Terms of the deal were not disclosed.
SecondMarket, whose private markets platform aims to help firms prepare for initial public offerings, said its acquisition will allow private companies to attract and retain talent by providing secondary liquidity and equity management services.
“As companies extend their pre-IPO lives, they face increasing pressure to provide liquidity to employees and early investors,” said Bill Siegel, SecondMarket's chief executive, who will lead the business unit at Nasdaq.
The acquisition coincides with the Nasdaq initiative to integrate Bitcoin technology into its private markets platform, by the end of the year. The Bitcoin integration is also an opportunity “to serve the equity needs of companies throughout their time in the private arena,” Siegel said.
SecondMarket, founded in 2004, previously ran a broker-dealer platform for investors in privately held banks; the platform has since been discontinued. SecondMarket's founder, Barry Silbert, remains chief executive of its former sister company, Digital Currency Group.