There was a significant increase in merger activity last week, with seven new deals announced, rumors about seven potential deals and three new SPAC business combinations announced. While multiple deals received required approvals and cleared HSR waiting periods, there were a few that faced regulatory hurdles.
Black Knight (BKI) and Intercontinental Exchange (ICE)
Black Knight (BKI) and Intercontinental Exchange (ICE) entered into a definitive merger agreement almost a year ago on May 4, 2022. Black Knight provides innovative, high-performance software, data, and analytics for mortgage and home equity lending and servicing to the mortgage industry. On the other hand, Intercontinental Exchange, a global financial services company, operates a network of regulated exchanges and clearinghouses for various economic and commodity markets.
We had added Black Knight as a potential deal in the works on April 5, 2022, when Bloomberg reported that the company was exploring a potential sale after receiving takeover interest. BKI’s price after this announcement was $66.27. Black Knight entered into a definitive agreement to be acquired by Intercontinental Exchange (ICE) in a deal valued at $13.1 billion. Investors could choose to receive the $85 per share consideration in cash (80%) or stock (20%) subject to proration, with the value of the cash election and the stock election equalized at closing.
The deal has been facing regulatory challenges since June 2022, when both companies received a Request for Additional Information and Documentary Material, commonly referred to as a “Second Request,” from the FTC.