By Adriano Marchese

 

Intercontinental Exchange Inc. and Black Knight Inc. said Tuesday they have lowered the proposed merger price and agreed to sell Black Knight's Empower loan origination system business to a subsidiary of Constellation Software Inc.

In May of last year, Intercontinental Exchange, the owner of the New York Stock Exchange, agreed to buy software, data and analytics company Black Knight for $13.1 billion.

On Tuesday, ICE and Black Knight said they have amended the terms, which would bring down the market value to $11.7 billion.

The companies said that the amended merger agreement values Black Knight at $75 a share, down from a previous $80, with the new consideration made up of $68 per share in cash and stock with a ratio of 0.0682, which is based on ICE's 10-day volume-weighted average price of $102.62 a share, as of March 3.

The two companies also entered into a divestiture agreement to secure clearance of their merger, which will see Black Knight's loan orgination system business, including the Exchange, LendingSpace and AIVA solutions, to a subsidiary of Constellation Software Inc.

No financial details of the divestitures were disclosed.

The proposed acquisition of Black Knight by ICE currently requires the receipt of regulatory clearance and is still under review by the U.S. Federal Trade Commission. The proposed divestiture of the LOS business to Constellation is contingent on the successful closing of the transaction, the companies said.

 

Write to Adriano Marchese at adriano.marchese@wsj.com

 

(END) Dow Jones Newswires

March 07, 2023 09:44 ET (14:44 GMT)

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