Intercontinental Exchange, Inc., a leading global provider of data, technology, and market infrastructure, announced that it strongly disagrees with, and will vigorously oppose, the Federal Trade Commission (FTC)’s challenge to ICE’s previously announced acquisition of Black Knight, Inc.
In many public forums, ICE has outlined its vision for a more equitable housing finance system, one which is currently fraught with inefficiencies, cybersecurity vulnerabilities, unnecessary delay, and requires robust digitization to lower costs for all participants. The deal between ICE and Black Knight, which is intended to automate, streamline, and increase transparency in the mortgage industry, will help achieve that vision.
Although ICE strongly believes that acquiring Black Knight is entirely procompetitive, ICE and Black Knight previously announced an agreement to sell Black Knight’s Empower loan origination system (LOS) business, including its Exchange, LendingSpace and AIVA solutions, to a subsidiary of Constellation Software Inc. (TSX: CSU) in connection with efforts to secure clearance of ICE’s proposed acquisition of Black Knight under the Hart-Scott Rodino-Act. The FTC’s attempt to block the combination, despite this divestiture remedy, is without merit and serves only to delay improving the experience and outcomes for all participants in the mortgage industry.
“We are disappointed that the FTC has filed litigation to prevent ICE from closing our acquisition of Black Knight," said Tim Bowler, President of ICE Mortgage Technology. "The proposed acquisition can bring to life a true end-to-end solution for the mortgage industry, benefitting aspiring and current homeowners across the United States.”
ICE is fully confident in our position and look forward to presenting it in court. While that litigation plays out, the company is continuing its work toward closing the acquisition, which it expects to complete in the third or fourth quarter of this year.
