Black Knight Inc. (NYSE: BKI) is selling its Optimal Blue business to a subsidiary of the Canadian-based Constellation Software Inc. (TSX: CSU) for $700 million.
The structure of the proposed transaction includes a payment by Constellation of $200 million in cash, with the remainder financed by a $500 million promissory note issued by Constellation to Black Knight at the closing of the transaction. If approved, this would be Constellation’s second acquisition of a Black Knight business – in March, the company agreed to buy Black Knight’s Empower loan origination system operations.
In May 2022, Black Knight announced it was being acquired by Intercontinental Exchange Inc. (NYSE: ICE) for $13.1 billion. The acquisition has been challenged by the U.S. Federal Trade Commission (FTC) – in March, the agency announced it would seek to halt the transaction, while in the following month it asked a federal court for a preliminary injunction to halt the deal. Some experts stated the sale of Optimal Blue is being transacted to help the companies soothe the antitrust concerns raised by the FTC in its objection to Intercontinental Exchange’s acquisition efforts.
;
