BlackRock Inc. BLK, -1.20% said Friday it has agreed to acquire eFront from private-equity firm Bridgepoint and eFront employees for $1.3 billion in cash. eFront is an alternative investment management software company with more than 700 clients in 48 counties. "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," BlackRock said in a statement. The deal will be funded with a mix of existing cash and debt and will be minimally dilute to earnings per share. Separately, BlackRock said it has agreed to buy about 3.1 million of its own shares for $412.84 a share in a private transaction under its existing buyback program. Shares fell 1% in early trade and are down 20% in the last 12 months, while the S&P 500 SPX, -0.23% has gained 8%.</s>The alternative investment management software company is seen to boost BlackRock’s risk management technology platform Aladdin.

BlackRock announced it has reached an agreement to acquire the French alternative investment management software company eFront for $1.3 billion in cash.

The company said the deal would be funded with a mix of existing cash and debt. eFront is owned by private-equity firm Bridgepoint and its own employees.

BlackRock said it would integrate eFront with its investment platform Aladdin. Aladdin was started as an internal BlackRock tool but repurposed as part of the company’s plan to increase revenues from technology.

“eFront vastly expands Aladdin’s alternatives capabilities and further distinguishes it as the most comprehensive investment operating platform in the world,” a BlackRock Chief Operating Officer Rob Goldstein said.

Meanwhile, BlackRock announced it was buying about 3.1 million of its own shares for $412.84 a share under its existing buyback program.

The company’s shares are down 20% in the last 12 months. Its shares were down 3% in midday trading on Friday.

The eFront announcement comes a day after HSBC signed an agreement to offer the Aladdin investment management software to its high-end customers.

BlackRock’s solutions division increased its revenues by 19.5% in 2018, but it remains much smaller than the company’s asset management business.

“Technology and illiquid alternatives are two pillars of BlackRock’s growth, and this transaction provides a unique opportunity to accelerate our positioning in both” BlackRock chairman and CEO Larry Fink said in a statement.

Alternative investments are expected to make up 40% of revenue in the global asset management industry by 2023, according to a study from Morgan Stanley and Oliver Wyman.

“We view building capabilities in alternatives as critical for any asset manager seeking to grow revenues,” that report said.</s>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."

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."

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.

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.

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.

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

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.</s>(Reuters) - BlackRock Inc, the world’s biggest asset manager, said on Friday it would buy French investment software provider eFront from private equity firm Bridgepoint and eFront employees for $1.3 billion in cash.

BlackRock plans to integrate eFront with its investment platform Aladdin, which is used by more than 225 institutions around the world.

Aladdin began as an internal tool at the company before becoming the linchpin of BlackRock’s plan to increase revenues from technology. It is used by investment managers to help to oversee risks and make investment decisions.

Europe’s largest bank, HSBC, on Thursday signed a deal to offer BlackRock’s Aladdin investment management software to its wealthy customers.

Separately, BlackRock said it would buyback about 3.1 million of its shares at $412.84 apiece under its existing repurchase program. The share repurchase deal is expected to close on Monday.

Shares of BlackRock fell 2.8 percent to $418.28 at mid-afternoon.</s>(Reuters) - World's biggest asset manager BlackRock Inc said on Friday it would buy French investment software provider eFront from private equity firm Bridgepoint and eFront employees for $1.3 billion in cash.

BlackRock plans to integrate eFront with its investment platform Aladdin, which is used by more than 225 institutions around the world.

Aladdin began as an internal tool at the company before becoming the linchpin of BlackRock's plan to increase revenues from technology. It is used by investment managers to help to oversee risks and make investment decisions.

Europe's largest bank, HSBC, on Thursday signed a deal to offer BlackRock's Aladdin investment management software to its wealthy customers.

Separately, BlackRock said it would buyback about 3.1 million of its shares at $412.84 apiece under its existing repurchase program. The share repurchase deal is expected to close on Monday.

Shares of BlackRock fell 1.5 percent to $423.83 in early trading.

This story has not been edited by Firstpost staff and is generated by auto-feed.

Firstpost is now on WhatsApp. For the latest analysis, commentary and news updates, sign up for our WhatsApp services. Just go to Firstpost.com/Whatsapp and hit the Subscribe button.</s>(Bloomberg) -- BlackRock Inc., the world’s biggest money manager, agreed to acquire French software provider eFront to expand private equity and real estate analytics for clients.

BlackRock will acquire 100 percent of the equity interest in eFront for $1.3 billion in cash, the company said in a statement Friday.

The purchase will add to one of BlackRock’s key businesses, a risk management technology platform called Aladdin. It can predict what a variety of worst-case scenarios would do to a portfolio, including how a 2008-style crash would affect a client’s holdings. Its users include pension funds, insurance companies and competing asset managers who pay to license Aladdin based on which of its capabilities they use.

“Technology and illiquid alternatives are two pillars of BlackRock’s growth, and this transaction provides a unique opportunity to accelerate our positioning in both,” Laurence Fink, chairman of BlackRock, said in the statement. “We’re particularly excited about eFront’s global footprint, including its headquarters in Paris, which is a key market on the continent for BlackRock.”

Bridgepoint acquired eFront for 300 million euros in 2015, and the company has broadened its offering since then, according to its website. EFront’s software helps private equity firms, real estate investors and other financial customers analyze their performance and fundraising, monitor and collect data on their portfolios, meet accounting and regulatory obligations and communicate with investors.

Founded in 1999, eFront has made several acquisitions to expands its technology platform, according to its website. It has 700 clients across 48 countries as of last year.

BlackRock, which is based in New York, had been competing with IHS Markit Ltd. and private equity firms to buy eFront, people with knowledge of the matter said earlier. BlackRock’s technology services revenue rose in 2018, driven by demand for the Aladdin platform.

Shares of BlackRock fell about 1 percent to $426 at 9:37 a.m. in New York. Through Thursday, they have gained about 10 percent this year.

Bloomberg LP, the parent of Bloomberg News, competes with IHS and eFront in providing financial news, analytics and information.

To contact the reporters on this story: Aaron Kirchfeld in London at akirchfeld@bloomberg.net;Sarah Syed in London at ssyed35@bloomberg.net

To contact the editors responsible for this story: Ben Scent at bscent@bloomberg.net, Dinesh Nair</s>Law360 (March 22, 2019, 3:12 PM EDT) -- BlackRock Inc. has agreed to buy Paris-based financial software company eFront for $1.3 billion with plans to merge the acquisition with its own investment management computer platform, called Aladdin, the companies said Friday....

To view the full article, register now.</s>BlackRock (NYSE:BLK) after agreeing to buy 100% of the equity interests in eFront, an alternative investment management software firm, for $1.3B in cash.

The purchase adds to BlackRock's Aladdin investment operating platform used by more than 225 institutions; eFront serves more than 700 clients and provides technology for managing the alternatives investment lifecycle, including due diligence, portfolio planning, performance, and risk analysis.

The deal will be funded with a combination of existing corporate liquidity and debt and is expected to be minimally dilutive to EPS but not dilutive on a cash basis.

Separately from the acquisition, BlackRock entered an agreement to repurchase ~3.1M of its shares at $412.84 per share in a private transaction.</s>WASHINGTON (dpa-AFX) - BlackRock (BLK) announced it has entered into an agreement to acquire 100% of the equity interests in eFront, an end-to-end alternative investment management software and solutions provider, from private equity firm Bridgepoint and eFront employees, for $1.3 billion in cash. Following completion of the notification and consultation process with eFront's employee-works council, BlackRock and eFront's shareholders are expected to enter into a definitive securities sale agreement. 



eFront, which serves more than 700 clients in 48 countries, is a 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. 



BlackRock stated that 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, the company noted.



'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 Fink, Chairman and CEO of BlackRock.



Separately, BlackRock announced, on March 20, the company 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. 



BlackRock stated that, as of March 25, it will have repurchased an aggregate of approximately $1.6 billion of its shares in 2019 and will have completed the targeted level of share repurchases for the year, but will remain opportunistic should relative valuation opportunities arise.



Copyright RTT News/dpa-AFX</s>March 22 (Reuters) - Asset manager BlackRock Inc said on Friday it would buy investment software provider eFront from private equity firm Bridgepoint and eFront’s employees for $1.3 billion in cash.

The deal will be funded with a combination of existing corporate liquidity and debt. (Reporting by Arjun Panchadar in Bengaluru; Editing by Shinjini Ganguli)
Global investment management company BlackRock says that it is buying eFront, the leading provider of management software for alternative investments, for $1.3 billion in cash.