Intercontinental Exchange to Acquire Black Knight in Cash/Stock Deal Valued at $13.1 Billion


Less than two years after it acquired mortgage origination software firm Ellie Mae for $11 billion, Intercontinental Exchange (ICE), a global provider of data, technology and market infrastructure, is acquiring mortgage software firm Black Knight for approximately $13.1 billion in a cash/stock deal, making it a dominant provider of software solutions to the mortgage industry.

Black Knight is one of the largest providers of software solutions to the mortgage industry. Its solutions span the entire mortgage lifecycle – from origination through servicing. Based in Jacksonville, Fla., Black Knight has approximately 6,500 employees.

“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,” says Jeffrey C. Sprecher, founder, chair and CEO of Intercontinental Exchange, in a release. “Black Knight shares our passion for leveraging technology to serve customers and households, and, with our expertise in operating networks and marketplaces, our planned acquisition will bring to life a true end-to-end solution for the mortgage manufacturing and servicing ecosystem, benefitting aspiring and current homeowners across the United States.”

“Black Knight has been on a successful journey to transform the mortgage industry by providing our clients with powerful, interconnected solutions that help them achieve greater efficiency and better serve their customers,” says Anthony M. Jabbour, chairman and CEO of Black Knight, Inc. “We believe this combination is the right next step in that journey. Black Knight and ICE share a common vision and commitment to deliver a better experience for our clients and the stakeholders we serve, and to ultimately streamline the homeownership process. By combining our expertise, we can deliver significant benefits to our clients and consumers by improving and streamlining the process of finding a home, as well as obtaining and managing a mortgage.”

The transaction is expected to close in the first half of 2023, pending regulatory approvals, Black Knight stockholder approval, and the satisfaction of customary closing conditions.

The transaction valued at $85 per share, or a total market value of $13.1 billion, with consideration in the form of a mix of cash (80%) and stock (20%).

Photo: Edge2Edge Media

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