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Intercontinental Exchange’s planned acquisition of mortgage tech provider Black Knight is closer to receiving a green light from antitrust regulators now that Black Knight’s Empower loan origination system and Optimal Blue division have been stripped from the deal.
Citing “significant progress” in negotiations, attorneys with the Federal Trade Commission, Black Knight and Intercontinental Exchange (ICE) on Monday asked a federal judge to temporarily dismiss a lawsuit the FTC filed in April seeking to stay the merger.
According to the joint stipulation for dismissal, the parties expect to reach an agreement by Aug. 25 that would spell out the terms under which the merger would be allowed. The agreement would consist of consent orders that would have to be approved by the FTC. If the agreement can’t be finalized, or if the FTC doesn’t sign off on the consent orders, the federal lawsuit could be revived, as it’s expected to be dismissed “without prejudice.”
In their attempts to satisfy antitrust regulators, Black Knight and Intercontinental Exchange (ICE) have carved off two big pieces of what was originally envisioned as a $13.1 billion deal when it was announced last year.
In March, the companies announced an agreement to sell Black Knight’s Empower loan origination system (LOS) to a competitor — Constellation Web Solutions, a subsidiary of Toronto-based Constellation Software Inc. ICE already offers a popular mortgage LOS, Encompass, thanks to its $11.4 billion acquisition of Ellie Mae in 2020.
Although terms of the Empower deal weren’t disclosed, ICE and Black Knight said an amended merger agreement valued Black Knight at $75 per share, or $11.7 billion — about $1.4…