Constellation’s Perseus Group to acquire Black Knight’s Optimal Blue for $700M

Constellation Software (CNSWF) announced that its Perseus operating group has entered into a binding commitment with Intercontinental Exchange (ICE) and Black Knight (BKI) to acquire Black Knight’s Optimal Blue business. Under terms of the agreement, Constellation will acquire Black Knight’s Optimal Blue business for $700M. The structure of the proposed transaction includes a payment by Constellation of $200M in cash, with the remainder financed by a $500M promissory note issued by Constellation to Black Knight, as a subsidiary of ICE, at the closing of the transaction. Completion of this transaction is subject to the closing of ICE’s acquisition of Black Knight, the closing of Constellation’s acquisition of Black Knight’s Empower loan origination system business entered into earlier this year in March, and other customary closing conditions.