Intercontinental Exchange, Black Knight Amend Deal Terms
08 March 2023 - 06:05PM
Dow Jones News
By Adriano Marchese
Intercontinental Exchange Inc. and Black Knight Inc. said
Tuesday they have lowered the proposed merger price and agreed to
sell Black Knight's Empower loan origination system business to a
subsidiary of Constellation Software Inc.
In May of last year, Intercontinental Exchange, the owner of the
New York Stock Exchange, agreed to buy software, data and analytics
company Black Knight for $13.1 billion.
On Tuesday, ICE and Black Knight said they have amended the
terms, which would bring down the market value to $11.7
billion.
The companies said that the amended merger agreement values
Black Knight at $75 a share, down from a previous $80, with the new
consideration made up of $68 per share in cash and stock with a
ratio of 0.0682, which is based on ICE's 10-day volume-weighted
average price of $102.62 a share, as of March 3.
The two companies also entered into a divestiture agreement to
secure clearance of their merger, which will see Black Knight's
loan orgination system business, including the Exchange,
LendingSpace and AIVA solutions, to a subsidiary of Constellation
Software Inc.
No financial details of the divestitures were disclosed.
The proposed acquisition of Black Knight by ICE currently
requires the receipt of regulatory clearance and is still under
review by the U.S. Federal Trade Commission. The proposed
divestiture of the LOS business to Constellation is contingent on
the successful closing of the transaction, the companies said.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
March 07, 2023 09:44 ET (14:44 GMT)
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