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With a merger with Intercontinental Exchange (ICE) expected to get the go-ahead from antitrust regulators, Black Knight plans to sell its Empower business and Optimal Inc. to a subsidiary of Canadian-based software giant Constellation Software next month. He said he plans to complete the sale of the Blue business.
Black Knight first offered to sell the Empower origination system [LOS] It merged with Constellation in March to pave the way for what was originally envisioned as a $13.1 billion merger with ICE when it was originally proposed last year. ICE already offers its own popular mortgage origination system, Encompass, thanks to its $11.4 billion acquisition of Ellie May in 2020.
Terms of the Empower sale were not disclosed, but ICE and Black Knight said the amended merger agreement valued Black Knight at $75 per share, or $11.7 billion. That’s about $1.4 billion less than when the deal was announced in 2022. The Empower sale agreement also includes Black Knight’s Exchange, LendingSpace and AIVA Solutions.
However, the Empower spin-off will not be enough to satisfy the Federal Trade Commission’s (FTC) antitrust regulators, and Empower’s customers will continue to rely on the ancillary services provided by Black Knight and Optimal Blue. gave an opinion. So ICE and Black Knight said in July that they were willing to sell Optimal Blue to Constellation, but only if the FTC allows the merger to proceed.
Citing “significant progress” in negotiations, attorneys for the FTC, Black Knight and Intercontinental Exchange (ICE) filed a lawsuit against a federal judge Aug. requested to be temporarily dismissed.
ICE and the Black Knight announced on friday They have signed an agreement with the FTC’s Competition Bureau, including a consent order, and said the merger is expected to close on Sept. 5.
Upon completion of the merger, the companies expect to complete the sale of the Empower and Optimal Blue businesses to Constellation Software Inc.’s subsidiaries within 20 days.
Black Knight’s Optimal Blue division operates a marketplace platform that connects mortgage lenders and investors, a product and pricing engine (PPE) for mortgage lenders and brokers, and a cloud-based platform that enables investors to purchase mortgages. offers tools including a trading environment for Most of the $700 million deal with Optimal Blue $500 million promissory note Issued to Black Knight by Constellation.
Constellation Software says both empower and optimal blue will be acquired by the Perseus Business Group, which acquires and invests in software businesses.
Companies in the real estate industry under an umbrella Members of the Perseus operating group include market leader in lead generation and contact management systems, real estate technology providers Constellation1, SmartZip, Top Producers, and Sharper Agent.
Last year, another Constellation subsidiary, Constellation Mortgage Solutions, launched the NOVA loan origination solution, touted as the new “gold standard in mortgage origination technology.”
Formerly known as Mortgage Builder, Southfield, Michigan-based CMS was acquired in 2019. Constellation Real Estate Group (CREG) is part of Constellation Software’s Perseus operating group.
Shares of Toronto-based Constellation Software transaction It neared an all-time high of $2,829 on July 19, giving the company a market capitalization of $43.7 billion (C$59.1 billion).
share in Black Knight and ice is trading near a 52-week high, with Black Knight valued at $11.9 billion and ICE at $66.4 billion.
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