The takeover of Black Knight Inc. by Intercontinental Exchange Inc. is set to proceed following clearance from the US Federal Trade Commission (FTC). A binding settlement has been accepted which requires key mortgage software products owned by Black Knight to be sold to rival company, Constellation Software Inc.
This outcome was arrived at after the FTC commissioners voted in favor of the settlement, as stated in an agency release. As per the agreed settlement, the two key assets to be divested by Black Knight to Constellation, a Toronto-based firm, are its Empower loan origination software and Optimal Blue business.
Black Knight’s Empower software is a comprehensive solution designed to automate loan origination processes, whereas Optimal Blue is a leading software employed to identify and secure loan rates. It is noteworthy that Optimal Blue is utilized by lenders in originating about 40% of residential mortgages in the United States.
The divestiture is aimed at maintaining competition within the mortgage software product market— a critical component within the larger real estate industry.
Following the FTC’s approval, both companies have communicated their plans to achieve deal closure by September 5.
For more details, continue reading at Bloomberg Law.