The Nasdaq Stock Market Inc. announced today that it has entered into a definitive agreement to acquire Carpenter Moore Insurance Services Inc., a privately held, San Francisco-based insurance brokerage firm specializing in management liability.

Nasdaq says management liability insurance is an integral part of a suite of services offered by its Corporate Client Group and follows on the heels of its recent launch of the Independent Research Network, a joint venture with Reuters to provide public companies with research coverage.

The firm says the addition of Carpenter Moore will increase its depth of expertise in directors and officers, errors and omissions and other management liability insurance products. It will also significantly expand regional coverage by Nasdaq’s insurance business. The acquisition encompasses four of Carpenter Moore’s geographic locations, including San Francisco, Texas, Minnesota, and Massachusetts. The Connecticut and New Jersey operations are being spun off in a separate transaction. The transaction is expected to close in the fourth quarter of 2005.

“Carpenter Moore has built a best-in-class organization in the executive and professional risk management space, and together with Nasdaq, we are looking forward to further enhancing our core strengths,” said Kinsey Carpenter, founder and president of Carpenter Moore. “We are excited about the opportunity to expand our work with public companies and to add value to Nasdaq’s family of innovative companies.”

As a result of this transaction, Nasdaq’s insurance business will be ranked as a top 10 provider of management liability insurance with a total of seven offices throughout the country, serving over 2,000 existing clients, including 12 of the Nasdaq 100 companies.

Nasdaq’s insurance business, including the Carpenter Moore acquisition and the existing Nasdaq Insurance Agency, will operate under the leadership of Susan Miner. Currently executive vice president of Carpenter Moore, Miner will assume the title of president for the combined entity.