Companies agree to sell the Optimal Blue platform to Constellation Software
Intercontinental Exchange (ICE) and Black Knight announced Monday they have agreed to sell Black Knight's mortgage pricing platform, Optimal Blue, to a subsidiary of Constellation Software.
Under the terms of the agreement, Constellation's operating group, Perseus, will acquire Optimal Blue for $700 million, consisting of $200 million in cash and a $500 million promissory note issued by Constellation to Black Knight.
The acquisition comes four months after Constellation agreed to purchase Empower, Black Knight's loan origination system business. The Optimal Blue deal is also linked to the $13.1 billion merger between ICE, and Black Knight announced in May 2022.
However, the Federal Trade Commission has moved an evidentiary hearing regarding the proposed merger on July 12 to September 25 due to the timing of a court hearing on the matter.
"This transaction will benefit ICE, Black Knight, and our collective shareholders," Intercontinental Exchange chief financial officer Warren Gardiner said in a statement. "Black Knight's high-growth, recurring revenue stream will further complement our 'all weather' business model, while the strength of ICE's balance sheet, and our combined cash flows, position this transaction to be accretive to adjusted earnings per share in the first full year."
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