US exchange group Nasdaq OMX Group Inc (NASDAQ:NDAQ) and US online marketplace SharesPost Inc said today they had agreed to create a joint venture that would form a marketplace for private companies.
The new entity, to be called NASDAQ Private Market (NPM) and to be based in San Francisco, will combine OMX’s market and operating expertise with SharesPost’s web-based platform, thus enhancing the efficiency and control of the market for private shares, the pair said.
As part of the deal, Nasdaq will take a majority stake in the venture for an undisclosed sum. SharesPost will continue to operate its broker dealer and registered investment advisor (RIA) operations separately from the joint venture, the companies added.
NPM will start operations later this year, subject to regulatory approvals.