BlackRock has announced the acquisition of the British data provider Preqin for 3.2 billion US dollars. The world's largest asset manager aims to strengthen its Aladdin software segment, which offers technology solutions to more than 1,000 clients. The deal is expected to be completed by the end of 2024, subject to regulatory approvals and other closing conditions.
Preqin, Founded in the UK in 2003, Specializes in Collecting Data on Financial Investors and Hedge Funds, and Has Now Become a Leading Independent Provider of Data Solutions in Private Markets.
Rob Goldstein, COO of BlackRock, emphasized the strategic importance of the acquisition: "BlackRock's vision has always been to bring together investments, technology, and data to offer solutions that meet the needs of our clients across their entire portfolio. As clients increasingly shift their focus from product selection to portfolio construction, this change requires technology, data, and analytics that create a 'common language' for investments in public and private markets.
BlackRock Prevails Against Notable Bidders Such as the London Stock Exchange, S&P Global, and Bloomberg, as Reported by the Private Banking Magazine. After Completion of the Acquisition, Mark O'Hare, Founder of Preqin and Former Largest Shareholder, Will Join BlackRock's Board of Directors. The Acquisition Enhances BlackRock's Investment Technology with a Complementary Data Business and Marks a Strategic Expansion into the Rapidly Growing Private Market Data Segment.
Sudhir Nair, Global Head of Aladdin, said: “Together with Preqin, we can make investments in private markets simpler and more accessible, while also building a better-connected platform for investors and fund managers. This offers Aladdin a significant opportunity to close the transparency gap between public and private markets through data and analysis.” Mark O’Hare added: “BlackRock is known for its outstanding performance in investment management and financial technology. Together, we can accelerate our efforts to deliver better data and analysis on private markets to all our clients on a large scale.”
The reaction of investors to the takeover was initially muted. At the NYSE, BlackRock's stock initially rose slightly, but then turned negative and temporarily lost 1.11 percent to $778.57.
