New York Stock Exchange parent Intercontinental Exchange will acquire Black Knight in a deal that values the mortgage lending software and data analytics firm for $13.1 billion.
ICE's cash and stock offering of $85 per share was a premium of nearly 34% to the Black Knight's closing price on Tuesday. The company value of the deal is around US$ 16 billion.
The ubu company said they expect the transaction to be completed in the first half of 2023.
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The acquisition of Black Knight, which provides software, data and analytics to the real estate and housing finance markets, is the latest in a series of deals since 2016 by ICE to support its mortgage services business. The company is betting on the windfall of automating the home financing process.
ICE announced a deal to buy Ellie Mae, a cloud-based platform that supports all aspects of mortgage origin, for US$11 billion in August 2020. That follows a US$335 million deal for Simplifile in 2019, and the acquisition of MERS, in which ICE took a majority stake in 2016 and bought outright in 2018.
“Our data, technology and networking expertise position us well to accelerate the analog-to-digital conversion that is happening across the mortgage industry,” ICE President Benjamin Jackson said by telephone with analysts in February.
While ICE is better known for its stock and futures exchanges, its mortgage technology division made $1.4 billion in 2021, accounting for about 20% of the Atlanta-based company's consolidated revenue, minus transaction-based fees.
ICE shares closed down 4% at $109.86 on Wednesday, while Black Knight shares closed up 14.5% at $72.84.
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