Black Knight Completes Acquisition of Optimal Blue; Significantly Expands Origination Offerings With Leading Secondary Market Solutions and Actionable Data Services
Cannae Holdings, Inc. and Thomas H. Lee Partners, L.P. are minority co-investors in newly formed entity
Black Knight, a leading provider of software, data and analytics solutions to the mortgage and consumer loan, real estate and capital markets verticals, announced the completion of its acquisition of Optimal Blue, a leading provider of secondary market solutions and actionable data services.
“Bringing Optimal Blue into the Black Knight family enhances our robust set of solutions with the addition of industry-leading product, pricing and eligibility capabilities and increases our already comprehensive data and analytics offerings,” said BK CEO Anthony Jabbour. “Our similar business models, which include both subscription-based recurring revenues and significant operating leverage, will be accretive to our key financial metrics and deliver significant shareholder value. The combined strengths of Black Knight and Optimal Blue will also give clients a wider selection of offerings from a single provider that will provide innovation to help transform the industries we serve and will significantly expand Black Knight’s ability to greatly advance our clients’ objectives, competitiveness and profitability.”
In connection with the acquisition, Black Knight will combine its Compass Analytics business with Optimal Blue in a newly formed entity with minority co-investors Cannae Holdings, Inc. (“Cannae”) and Thomas H. Lee Partners, L.P. (“THL”). Cannae and THL will each have a 20% ownership interest in the new entity. Black Knight will own 60% of the new entity. Optimal Blue was purchased for an enterprise value of $1.8 billion funded with cash on hand, debt financing and investments from Cannae and THL.
Trasimene Capital Management acted as the financial advisor to Black Knight.