Nasdaq OMX Group (NDAQ) will take a 5% equity stake in Borsa Istanbul A.S. as part of a deal that also includes technology-sharing and advisory services, the exchanges said Tuesday.
Nasdaq will have the option to increase its stake in the Turkish entity by 2% and will receive a series of cash payments.
Borsa Istanbul will share in Nasdaq's market technology while receiving guidance on strengthening its brand and building a capital markets hub for Eurasia. Borsa Istanbul may also end up with a "minority participation" in Nasdaq, the companies said.
The deal is the culmination of the exchanges' July agreement, in which both companies said they wanted to expand their footprint in the region. At the time, Nasdaq also said the deal would help Borsa Istanbul hold an initial public offering in the first quarter of 2016.
Shares of Nasdaq were inactive at $39.83 before the open.
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