Constellation Software Agrees to Acquire Optimal Blue from Black Knight, Intercontinental Exchange
July 17 2023 - 9:24AM
Dow Jones News
By Adriano Marchese
Constellation Software said Monday that it has agreed to acquire
the secondary market solutions and actionable data services
business of Black Knight and Intercontinental Exchange for a total
of $700 million.
The Canadian diversified software company said its Perseus
operating group has entered into a binding commitment with the two
New York-listed companies to acquire Optimal Blue.
The Perseus operating group is one of Constellation's operating
groups that acquires and invests in software businesses.
The structure of the proposed transaction includes a
$200-million cash payment and a promissory note worth $500
million.
The completion of the transaction is subject to the acquisition
of Black Knight by Intercontinental Exchange, the owner of the New
York Stock Exchange, as well as Constellation's acquisition of
Black Knight's loan origination system business, Empower, which was
announced earlier in March.
The U.S. Federal Trade Commission voted in March to sue to block
Intercontinental Exchange from completing its $11.7 billion
acquisition of mortgage software provider Black Knight on the
grounds that the deal would lead to higher prices for software that
lenders use to generate mortgages.
Black Knight's sale of Empower was largely to win clearance for
the acquisition to go through.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
July 17, 2023 09:09 ET (13:09 GMT)
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