Black Knight closes $1.8bn acquisition of Optimal Blue

by Candyd Mendoza17 Sep 2020

Black Knight has closed its acquisition of data and analytics provider Optimal Blue – boosting its portfolio of secondary markets products and actionable data services.

Black Knight first announced the acquisition in July. Black Knight said that would merge Optimal Blue with its Compass Analytics business to form a new entity with minority co-investors Cannae Holdings and Thomas H. Lee Partners (THL). Cannae and THL will each have a 20% share in the new company, while Black Knight will own 60%.

The deal values Optimal Blue at $1.8 billion, which Black Knight will fund with cash on hand, debt financing, and investments from Cannae and THL.

In a statement, Black Knight CEO Anthony Jabbour said that the combination of the acquisition would “give clients a wider selection of offerings from a single provider” and “will significantly expand Black Knight's ability to greatly advance its clients' objectives, competitiveness and profitability.”

"Our similar business models, which include both subscription-based recurring revenues and significant operating leverage, will be accretive to our key financial metrics and deliver significant shareholder value,” he said.

Black Knight expects the transaction to contribute to its projected revenue of approximately $5 million in the third quarter and to the $4 million expense related to the $1 billion of 3.625% senior unsecured notes due Sept. 1, 2028.