Intercontinental Exchange (ICE), the financial markets data and infrastructure company, has finalized its $11.9 billion acquisition of Black Knight, a leading provider of mortgage software, data and analytics solutions.
The deal expands ICE’s growing footprint in mortgage technology services. Black Knight strengthens ICE’s capabilities spanning mortgage origination, servicing, and secondary market activities.
ICE, with a market valuation of $63 billion, has been actively acquiring assets to build out its mortgage tech segment. Previous deals include Ellie Mae, Simplifile and MERS.
Black Knight, currently valued at around $10 billion, offers software and data services used by mortgage lenders, servicers, and real estate industry participants.
The combination aims to improve automation and digitization across the mortgage process through ICE’s financial resources and Black Knight’s housing domain expertise.
Black Knight shareholders could elect to receive the deal consideration in cash or ICE stock, subject to proration procedures. Preliminary results indicate strong demand for the stock option.
To secure regulatory clearances, ICE agreed to divest Black Knight’s Optimal Blue and Empower mortgage origination system businesses to Constellation Software Inc.
“Our team is ready to apply our proven playbook to help improve the homeownership experience for millions of families,” said ICE CEO Jeffrey Sprecher.
The deal expands ICE’s information services and market infrastructure footprint into the massive U.S. housing market, while providing Black Knight greater scale and distribution capabilities.
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