BKI - Black Knight ticks lower as FTC seeks court order blocking ICE deal

2023-04-10 17:25:29 ET

Black Knight ( NYSE: BKI ) fell almost 1% in regular trading on Monday after the Federal Trade Commission staff asked a federal court to prohibit the proposed $11.7 billion sale to Intercontinental Exchange ( ICE ).

The FTC asked a federal court to issue a temporary restraining order and a preliminary injunction to prevent ICE ( ICE ) from consummating its proposed acquisition of rival mortgage loan technology firm Black Knight ( BKI ), according to a statement from the regulator.

The court filing in Norther California comes after the FTC a month ago sued to block the transaction, saying the deal would reduce competition and innovation in the market for mortgage loan technology and would drive up costs for lenders and homebuyers.

The FTC asked the federal court to temporarily block the merger on Monday while it works to block the deal through an internal administrative law judge. The FTC's administrative hearing on the transaction is set for July 12.

"Preliminary relief is warranted and necessary," the FTC wrote in the lawsuit on Monday. "Should the Commission rule, after the full administrative proceeding, that the Acquisition is unlawful, reestablishing the status quo would be difficult, if not impossible, if the Acquisition has already occurred in the absence of preliminary relief."

A few days before the FTC announced it planned to block the deal last month, Black Knight ( BKI ) and ICE amended the terms of their proposed merger and agreed to sell Black Knight's Empower loan origination system business to Constellation Software ( OTCPK:CNSWF ).

On Wednesday Intercontinental Exchange ( ICE ) said its total average daily volume increased 15% Y/Y in March.

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