Constellation Software to Acquire Optimal Blue — BKI and CSU Shares Rally

Toronto-based Constellation Software (TSX:CSU) disclosed today that its Perseus division is set to purchase the Optimal Blue business from Black Knight, Inc. (NYSE:BKI), in a deal involving Intercontinental Exchange, Inc. (NYSE:ICE). Optimal Blue is a provider of software and data services for the mortgage industry.

The acquisition, priced at $700 million USD, will see Constellation paying $200 million USD in cash, while the outstanding $500 million USD will be addressed through a promissory note from Constellation to Black Knight, an ICE subsidiary, upon the transaction's conclusion.

This business transaction is subject to various customary closing conditions and relies on the completion of ICE's acquisition of Black Knight and Constellation's previous agreement to acquire Black Knight’s Empower loan origination system (LOS) business, which was announced earlier this year.

The sale is part of ICE's and Black Knight's strategy to obtain regulatory approval for ICE’s proposed acquisition of Black Knight.

As a result, BKI stock finished 16.26% higher on the day, while CSU.TO stock gained 1.98%.