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Black Knight’s Chairman and CEO said the company shares the same vision and commitment with ICE.
The owner of the New York Stock Exchange (NYSE), Intercontinental Exchange (ICE), has agreed to acquire software, data, and analytics company Black Knight Inc (NYSE: BKI) for $131.1 billion. ICE (NYSE: ICE) announced its acquisition of Black Knights in a press release, referring to the deal as a “definitive agreement.” According to the official announcement, the Board of Directors of both companies unanimously approved the definitive agreement.
ICE offered to purchase Black Knight at $85 per share, a premium of about 34$ to the software company’s close a day before the announcement on the 4th of May. At writing, BKI is up 0.91% to $73.50.
Black Knight offers its services of software, data, and analytics solutions to various mortgages and real estate. The company helps increase efficiencies, reduce risks, lower organizational costs, and grow businesses. Integrating Black Knight solutions and ICE’s growing mortgage technology business will improve the mortgage lending business. Both the borrowing and lending parties will benefit from the collaboration.
Intercontinental Exchange Chair, CEO, and Founder, Jeffery C. Sprecher commented:
“Since our founding in 2000, ICE’s simple mission has been to make analog and opaque financial transactions more digital and transparent, beginning with commodity markets, extending across a large array of asset classes, and most recently working to help streamline the mortgage industry. Black Knight shares our passion for leveraging technology to serve customers and households, and, with our expertise in operating networks and marketplaces, our planned acquisitions will bring to life a true end-to-end solution for the mortgage manufacturing and servicing ecosystem, benefiting aspiring and current homeowners across the United States.”
Intercontinental Exchange and Black Knight to Combine Technology Solutions
Additionally, Anthony M. Jabbour, who is Black Knight’s Chairman and CEO, expressed his belief in the development. He said Black Knight shares the same vision and commitment with ICE. In Jabbour’s opinion. The joint venture is capable of delivering benefits to its clients and consumers. He added that the companies would improve the process of finding a home and mortgage management.
Speaking on the agreement, Intercontinental Exchange Chief Financial Officer Warren Gardiner said:
“This transaction will benefit ICE, Black Knight, and our collective shareholders. 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.
Intercontinental Exchange stock has declined almost 20% since the year began, in addition to a 3.31% loss over the past year. The company has also lost 14.10% in the last three months and more than 15% over the past months. Also, the technology company’s stock has dropped 7.87% in the last five days.