Broker Canaccord Genuity ( CCORF ) said Northern Data’s (NB2) long-anticipated merger with video platform Rumble (RUM) took a major step forward yesterday after the companies signed a business combination agreement.

The broker downgraded Northern Data ( NDTAF ) to hold from buy and lowered its price target to 15 euros ($17.3) from 27 euros, citing the merger's implied exchange ratio. Canaccord noted that additional conditional payments tied to commercialization milestones at the Corpus Christi, Texas site are unlikely to materially alter the valuation.

Northern Data ( NDTAF ) shares rose 9.8% in German trading to 17 euros.

The deal aims to scale Nasdaq-listed Rumble’s cloud and data center footprint, extend its international reach and sharpen its go-to-market strategy through government and enterprise ties, the Monday report said.

According to Canaccord analysts led by Kingsley Crane, the merger sets in motion three milestones: an exchange offer for Northern Data ( NDTAF ) shares, Tether’s 150 million-euro GPU purchase agreement and a 100 million-euro ad commitment from Tether, issuer of the world's largest stablecoin.

As Northern Data’s majority shareholder, Tether will become an anchor customer for the combined company once the deal closes.

While some investors may view the deal’s terms as underwhelming, the analysts said the outcome reflects Northern Data’s organizational volatility and the evolving AI infrastructure landscape.

Though its Taiga Cloud unit had recovered to monthly recurring revenue of EUR10 million–EUR15 million by late October, the durability of that growth beyond 2026 remains uncertain.

The deal is expected to close in the second quarter of 2026, with Tether’s backing providing strong momentum toward completion, the report added.

Read more: Rumble Gains on Plans to Acquire Tether-Affiliated Northern Data