: Black Knight selling unit to win clearance for acquisition by IntercontinentalExchange
Black Knight Inc. BKI and Intercontinental Exchange Inc. ICE cut the value of their merger deal by about $1.4 billion on Tuesday after Black Knight said it’s selling its Empower loan origination system to Constellation Software Inc. CA:CSU to win clearance for its deal with ICE with U.S. regulators. Black Knight did not provide a purchase price for its Empower loan origination system, which includes Exchange, LendingSpace and Aiva solutions. The companies said the deal is partly to secure clearance of ICE’s proposed acquisition of Black Knight under the Hart-Scott Rodino Act. The amended merger agreement now values Black Knight at $75 per share, or $11.7 billion. The updated deal includes $68 per share in cash and stock with an exchange ratio of 0.0682. Black Knight and ICE originally announced their merger on May 22 for a total price of $13.1 billion, or $85 a share, with a targeted close date in the first half of 2023. Intercontinental Exchange is up 2% while Black Knight stock is up 4%.
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