Here's Why Intercontinental Exchange Bought Black Knight Financial
Intercontinental Exchange (NYSE: ICE), which has been known primarily as an operator of stock, bond, and commodity exchanges, has been building a presence in the mortgage business. Instead of extending credit, Intercontinental Exchange has chosen to focus on the infrastructure of making mortgage loans.
It recently entered into an agreement to buy Black Knight Financial (NYSE: BKI), which builds on Intercontinental Exchange's solutions for assembling mortgage loans. Black Knight shareholders will receive $85 in either cash or stock for each share they own. The $13.1 billion deal has been approved by both boards but still needs regulatory and shareholder approvals.
Here is the strategic rationale for the transaction.
Source Fool.com
