Intercontinental Exchange Says Disappointed On FTC's Attempt To Block Black Knight Deal

Author: Akanksha Bakshi | March 10, 2023 08:33am

Intercontinental Exchange, Inc. (NYSE:ICE) announced that it strongly disagrees with, and will vigorously oppose, the Federal Trade Commission (FTC) 's challenge to its acquisition of Black Knight, Inc. (NYSE:BKI).
FTC sued to block ICE's proposed acquisition of Black Knight, alleging the deal would drive up costs, reduce innovation, and reduce lenders' choices for tools necessary to generate and service mortgages.
"This deal would reduce competition in key areas of the mortgage process, ultimately raising costs for lenders and homebuyers. The FTC will intervene when illegal mergers risk harming competition in such critical markets," commented Patty Brink, Acting Deputy Director of the Bureau of Competition.
The Commission vote to issue the administrative complaint was 4-0.
ICE and Black Knight previously announced an agreement to sell Black Knight's Empower loan origination system (LOS) business to a subsidiary of Constellation Software Inc. (OTC:CNSWF) in connection with efforts to secure merger clearance under the Hart-Scott Rodino-Act.
Price Action: BKI shares closed lower by 2.61% at $59.42 and ICE by 2.45% at $100.10 on Thursday.