BlackRock to acquire eFront for $1.3B in cash
BlackRock announced that it has made a binding offer and entered into an exclusive agreement, subject to the conditions below, to acquire 100% of the equity interests in eFront from private equity firm Bridgepoint and eFront employees, for $1.3B in cash. The combination of eFront with Aladdin, BlackRock's investment operating platform, will set a new standard in investment and risk management technology. eFront, which serves more than 700 clients in 48 countries, is a comprehensive technology solution for managing the alternatives investment lifecycle, from due diligence and portfolio planning to performance and risk analysis, across a range of alternative asset classes. As alternatives go mainstream, investment managers' ability to seamlessly manage portfolios across public and private asset classes on a single platform is critical. eFront will extend Aladdin's end-to-end processing solutions offering in alternative asset classes, enabling clients to get an enterprise view of their portfolio. Following completion of the notification and consultation process with eFront's employee-works council, as required by law, BlackRock and eFront's shareholders are expected to enter into a definitive securities sale agreement contemplated by the exclusive agreement. Closing of the transaction would be subject to entry into the definitive securities sale agreement and satisfaction of the conditions set forth therein. The eFront transaction will be funded with a combination of existing corporate liquidity and debt. While minimally dilutive to earnings per share, the transaction will not be dilutive on a cash basis.