Black Knight to draw on revolver for Optimal Blue purchase

By Sara Rosenberg

New York, Aug. 11 – Black Knight Inc. plans on using borrowings under its revolving credit facility to help fund its acquisition of Optimal Blue from GTCR for an enterprise value of $1.8 billion, subject to customary purchase price adjustments, according to a news release.

Other funds for the transaction are expected to come from $750 million of senior unsecured notes issued by indirect wholly owned subsidiary Black Knight InfoServ LLC, cash on hand and equity from Cannae Holdings Inc. and Thomas H. Lee Partners LP.

In connection with the acquisition, Black Knight will combine its Compass Analytics business with Optimal Blue in a newly formed entity and sell a minority interest in the new entity to both Cannae and Thomas H. Lee. Cannae and Thomas H. Lee will each own about 20% of the new entity, and Black Knight will own about 60% of the new entity.

Cannae and Thomas H. Lee are contributing $290 million each, or $580 million total, in equity for the transaction.

Closing is expected in the third quarter, subject to regulatory approvals and other customary conditions.

Black Knight is a Jacksonville, Fla.-based provider of integrated software, data and analytics solutions that facilitate and automate many of the business processes across the homeownership lifecycle. Optimal Blue is a Plano, Texas-based provider of secondary market solutions and actionable data services.

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