Intercontinental Exchange (ICE) and Black Knight have announced that the U.S. Federal Trade Commission (FTC) has agreed to support the dismissal of the preliminary injunction that sought to block their merger. The two companies will now focus on reaching a final settlement that resolves the FTC’s challenge to the deal, which was initially struck in May of 2022.
The news had an immediate impact on the stock market, as ICE shares dropped by 2% to $111.70 in premarket trading, while Black Knight stock saw a rise of 4.5%.
The FTC’s decision to sue in March came as a result of concerns over reduced competition in the mortgage-software provider space if ICE were to complete its $11.7 billion acquisition of Black Knight.
However, recent developments have shown that both ICE and Black Knight are committed to resolving these concerns. Last month, Black Knight announced that it would sell its secondary market solutions and actionable data services business for $700 million to Canadian software company Constellation Software. This sale, along with a previous agreement to sell its loan-origination system business, Empower, also to Constellation, were part of the companies’ efforts to facilitate the merger agreement.
By working towards a final settlement and addressing the FTC’s concerns, ICE and Black Knight aim to move forward with their merger and further solidify their positions in the market.