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Intercontinental Exchange (NYSE:ICE) and Black Knight Inc. (NYSE:BKI) jumped Tuesday morning after the companies said they have agreed 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. (OTC:CNSWF).
Last May, ICE revealed it had reached a definitive agreement to acquire Black Knight, but it raised scrutiny regarding antitrust concerns and data privacy issues.
The deal to sell Black Knight’s Empower loan origination system business is part of a move to ease regulator concerns.
“ICE and Black Knight entered into the divestiture agreement in connection with efforts to secure clearance of ICE’s proposed acquisition of Black Knight under the Hart-Scott Rodino Act,” ICE and BKI said in a statement.
The amended merger agreement terms value Black Knight at $75 per share or $11.7 billion. Ice’s acquisition of BKI remains under review by the Federal Trade Commission (FTC).
Black Knight shares are currently up over 4%, while ICE is trading more than 2% above Monday’s close.
