- Constellation Software (TSX:CSU) signed a deal to buy Black Knight Inc.’s (NYSE: BKI) Optimal Blue business for US$700 million
- The Toronto-based software company will pay US$200 million in cash and issue a US$500 million promissory note at 7 per cent interest under the deal
- Optimal Blue provides data services to the mortgage industry and Intercontinental Exchange owns the NYSE. Owning Black Knight would make it the largest mortgage software provider in the United States
- Constellation Software stock (TSX:CSU) opened trading at C$2,751.46 per share
Constellation Software (TSX:CSU) signed a deal to buy Black Knight Inc.’s (NYSE: BKI) Optimal Blue business for US$700 million.
The Toronto-based software company will pay US$200 million in cash and issue a US$500 million promissory note at 7-per-cent interest under the deal.
Back in March, a deal was announced that would see Constellation Software buy Black Knight’s Empower loan origination system business.
Completion of this transaction is subject to the closing of Intercontinental Exchange Inc.’s (NYSE:ICE) acquisition of Black Knight and the closing of Constellation’s acquisition of Black Knight’s Empower loan origination system business.
Optimal Blue provides data services to the mortgage industry and Intercontinental Exchange owns the New York Stock Exchange. Owning the platform would make it the largest mortgage software provider in the United States.
Constellation Software Inc. develops and customizes software for public- and private-sector markets. The firm acquires, manages, and builds vertical-specific businesses. Its operations are organized into two segments: Public Sector and Private Sector. The portfolio companies serve various markets, including communications, credit unions, beverage distribution, tour operators, auto clubs, textiles and apparel, hospitality, and community care.
Constellation Software Inc. opened trading at C$2,751.46 per share and rose nearly 2 per cent in early Tuesday trading.
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