Shares of Black Knight, a leading mortgage software provider, surged on Monday after Constellation Software announced its plans to acquire Black Knight’s secondary market solutions and actionable data services business for a whopping $700 million. The acquisition will be carried out by Constellation Software’s Perseus operating group.
This move comes after Constellation Software had previously acquired Black Knight’s loan-origination system business, Empower, in March. The acquisition of Empower was a strategic move to ensure the successful completion of Black Knight’s acquisition by Intercontinental Exchange.
In March, the U.S. Federal Trade Commission expressed concerns about the acquisition of Black Knight by Intercontinental Exchange, stating that it could potentially reduce competition in the mortgage software industry. However, with the sale of Empower and now with the sale of Black Knight’s secondary market solutions and actionable data services business to Constellation Software, it appears that the necessary steps are being taken to address these concerns.
This acquisition is a significant development in the mortgage software industry, as it further consolidates Constellation Software’s position as a major player in the market. With Black Knight’s well-established and highly regarded secondary market solutions and actionable data services business under their belt, Constellation Software is poised to strengthen its position and enhance its offerings in the industry.
Investors have responded positively to this news, with Black Knight’s shares trading nearly 14% higher in New York at $69.58 as of 9:57 a.m. ET. This surge in share price reflects the confidence and excitement surrounding this major acquisition by Constellation Software.
Overall, this acquisition marks an important milestone for both Constellation Software and Black Knight, as they continue to shape the future of the mortgage software industry. The integration of Black Knight’s business into Constellation Software’s portfolio is expected to bring about new opportunities and advancements in the market.
