FTC to challenge ICE’s $13B Black Knight Deal this week
According to two sources, the Federal Trade Commission will sue Intercontinental Exchange for $13.1 billion for its proposed acquisition of Black Knight, a rival mortgage software company, as soon as Thursday. Black Knight’s Empower is second in this market. Black Knight’s Empower is the second-largest player in that market. The Community Home Lenders of America (which represents smaller lenders) and Representative Maxine Wassers of California (the top Democrat on Congress’ Financial Services Committee) expressed concern about the merger. They said that any higher mortgage servicing or loan origination costs would be passed on to home-buyers. Khan has asked the FTC to take a stronger stance on mergers in rapidly changing technology markets where data is a critical element. Black Knight and ICE did not immediately respond to a request of comment. Earlier, Politico reported that the FTC was preparing a suit.