BlackRock has entered into an exclusive agreement to acquire eFront, a France-based alternative investment management software and solutions provider, from Bridgepoint for $1.3bn in an all-cash deal.
Image: BlackRock entered into an exclusive agreement to acquire eFront. Photo: courtesy of aymane jdidi/Pixabay.
The investment management firm will buy 100% of the equity interests in eFront and its employees in a move to grow its footprint and technology capabilities in France, Europe and across the world.
eFront, which has expertise in alternative investments and risk management, provides solutions to companies in the private equity, banking, real estate investment and insurance sectors.
BlackRock chairman and CEO Laurence Fink said: “Technology and illiquid alternatives are two pillars of BlackRock’s growth, and this transaction provides a unique opportunity to accelerate our positioning in both.
“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, which was founded in 1999, caters to over 700 clients across 48 countries, through a workforce of around 700 people. It was acquired by Bridgepoint in 2015.
The company’s software solutions are used for a variety of alternative asset classes for handling their alternatives investment lifecycle, from due diligence and portfolio planning stage to performance and risk analysis.
BlackRock claimed that the combination of the French software provider and its investment operating platform Aladdin will create a new standard in investment and risk management technology.
BlackRock expects eFront to extend the end-to-end processing solutions offering of Aladdin’s across alternative asset classes. The combination will allow clients to get an enterprise view of their portfolio, said the global investment management company.
eFront CEO Tarek Chouman said: “Aladdin has long set the standard for investment and risk management technology and eFront is excited to be joining the market leader.
“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.”
BlackRock and eFront’s shareholders will sign a definitive securities sale agreement upon completion of the notification and consultation process with eFront’s employee-works council, as required by the French law.
The closing of the deal will be subject to entry into the definitive securities sale agreement and satisfaction of the conditions defined in it, said BlackRock.