WASHINGTON—The Federal Trade Commission has approved a proposed consent order to resolve antitrust concerns surrounding Intercontinental Exchange, Inc.’s (ICE) proposed $13.1 billion acquisition of Black Knight, a deal involving a major player in the mortgage servicing market.
According to the FTC, the proposed settlement ensures Black Knight’s divestiture of Empower and Optimal Blue, two businesses that provide services in the mortgage origination process. The FTC said it also secured other concessions to “promote the success of the divested businesses.”
The proposed consent order settles FTC charges that ICE’s deal with Black Knight, which combines the two top mortgage technology providers, would drive up costs, reduce innovation, and limit lenders’ choices for mortgage origination tools.
The Terms of Order
Under the terms of the proposed order, Black Knight’s Optimal Blue business and Empower business, along with certain related products, will be divested to Constellation Web Solutions Inc., a provider of mortgage-related tools and software.
“To ensure the success of these divestitures, ICE and Black Knight are required to maintain the viability of the businesses until they are successfully divested to Constellation, and to provide transition assistance to enable Constellation to operate the businesses along the same lines that Black Knight has operated them,” the FTC said.
The proposed consent order also requires ICE and Black Knight, for the next 10 years:
- To seek prior approval from the FTC before either reacquiring any divested asset or acquiring an interest in a loan origination system (LOS) business.
- Requires the companies to provide prior notice to the FTC before acquiring an interest in a product, pricing, and eligibility engine (PPE) business for that same period.
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