Acquisition Strengthens Aladdin’s Alternatives and Multi-Asset
Capabilities
Combination Sets New Standard in Investment Management Technology by
Offering Industry’s Most Comprehensive “Whole Portfolio” Investment
Operating Platform
BlackRock also Enters Agreement to Repurchase 3.1 Million Shares in
Separate Private Transaction
NEW YORK & PARIS--(BUSINESS WIRE)--
BlackRock (NYSE: BLK) today 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, the world’s
leading end-to-end alternative investment management software and
solutions provider, from private equity firm Bridgepoint and eFront
employees, for $1.3 billion in cash. The combination of eFront with
Aladdin, BlackRock’s investment operating platform used by more than 225
institutions around the world, 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.
“Technology and illiquid alternatives are two pillars of BlackRock’s
growth, and this transaction provides a unique opportunity to accelerate
our positioning in both,” said Laurence D. Fink, Chairman and CEO of
BlackRock. “We’re particularly excited about eFront’s global footprint,
including its headquarters in Paris, which is a key market on the
continent for BlackRock. As a global asset manager, we are increasingly
focused on understanding the unique needs of clients in each community
where we operate. eFront immediately deepens our presence and technology
capabilities in France, Europe and across the globe.”
“eFront vastly expands Aladdin’s alternatives capabilities and further
distinguishes it as the most comprehensive investment operating platform
in the world,” said Rob Goldstein, Chief Operating Officer of BlackRock.
“In addition to the benefits eFront will bring to Aladdin clients, the
transaction also enhances BlackRock’s own alternatives investment
platform and advances the company’s goal of using technology to
strengthen its leadership position in the illiquid investment space and
providing whole portfolio solutions to clients.”
A Whole Portfolio Approach
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.
“There are $9 trillion in alternative assets under management in the
industry today and clients are incorporating them into their investment
strategies at a record pace,” said Goldstein. “This has created an
unprecedented need for risk and investment management capabilities
spanning both public and private asset classes.”
“Offering eFront’s leading capabilities in alternatives to the Aladdin
Community through BlackRock Solutions will allow our clients to access a
‘whole portfolio’ approach that only Aladdin will provide. We are
excited to welcome eFront’s 700 employees to BlackRock as we continue to
offer eFront as its own platform and enrich its value proposition with
Aladdin analytics.”
“Aladdin has long set the standard for investment and risk management
technology and eFront is excited to be joining the market leader,” said
Tarek Chouman, Chief Executive Officer of eFront. “BlackRock’s dynamic
platform and global reach will allow us to help even more clients with
their alternative asset needs and greatly enhance the value proposition
we offer our clients today.”
Xavier Robert, partner at Bridgepoint, said: “eFront is a high growth
business which since its acquisition by Bridgepoint in 2015 has
undergone a period of significant transformation to become the market
leader in software for the alternative asset management industry. With
its strategically positioned platform, a leading product portfolio, and
a high quality management team, the business is now poised for further
growth under BlackRock’s ownership.”
Timeline, Financial Impact and Strategic Share
Repurchase
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.
Separate from the eFront acquisition, on March 20, 2019, BlackRock
entered into an agreement to repurchase approximately 3.1 million of its
shares at a per share price of $412.84 in a private transaction under
its existing repurchase program. The share repurchase transaction is
expected to close on March 25, subject to customary closing conditions.
As of March 25, BlackRock will have repurchased an aggregate of
approximately $1.6 billion of its shares in 2019 and will have
completed its targeted level of share repurchases for the year, but will
remain opportunistic should relative valuation opportunities arise.
About Aladdin
Aladdin has always been at the core of BlackRock. It combines
sophisticated risk analytics, exposure and performance analyses with
comprehensive portfolio management, trading, compliance and operational
tools on a single unified platform. Aladdin was first built to manage
BlackRock’s business, and the firm continues to be the largest user of
Aladdin today. Through Aladdin, the firm offers to clients the same
technology and intellectual capital that BlackRock uses to manage
investments day-to-day. This “provider/user” dynamic brings a higher
level of discipline to Aladdin than typical third-party technology
offerings.
About eFront
eFront, founded in 1999 by Olivier Dellenbach, is based in Paris and is
the leading technology provider for managing the alternatives investment
lifecycle, from due diligence and portfolio planning, to performance and
risk analysis, across a range of alternative asset classes. eFront’s
solutions serve investors in the private equity, real estate investment,
banking, and insurance sectors.
About Bridgepoint
Bridgepoint is an international private equity firm. With over €18
billion of assets under management and over €28 billion of capital
raised to date, it typically focuses on acquiring well managed companies
in attractive sectors helping companies and management teams by
investing in expansion, operational transformation or via consolidating
acquisitions. Bridgepoint has offices in Amsterdam, Frankfurt, Istanbul,
London, Luxemburg, Madrid, New York, Paris, San Francisco, Shanghai,
Stockholm and Warsaw. www.bridgepoint.eu
About BlackRock
BlackRock helps investors build better financial futures. As a fiduciary
to our clients, we provide the investment and technology solutions they
need when planning for their most important goals. As of December 31,
2018, the firm managed approximately $5.98 trillion in assets on behalf
of investors worldwide. For additional information on BlackRock, please
visit www.blackrock.com
| Twitter: @blackrock | Blog: www.blackrockblog.com
| LinkedIn: www.linkedin.com/company/blackrock.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190322005228/en/
Investor Relations
Samantha Tortora
212-810-5397
Samantha.Tortora@BlackRock.com
Media Relations
Melissa Garville
212-810-5528
Melissa.Garville@BlackRock.com
Ryan O'Keeffe
+44 (20) 77435876
Ryan.Okeeffe@BlackRock.com
Source: BlackRock