American asset manager BlackRock has agreed to buy French alternative investment solutions provider eFront in a cash deal worth $1.3bn.
Under the agreement, BlackRock will acquire 100% equity in eFront from private equity firm Bridgepoint and eFront employees.
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eFront is currently used by over 700 clients across 48 countries.
The business focuses on managing due diligence, portfolio planning, performance and risk analysis across various alternative asset classes.
The acquisition is said to add to BlackRock’s Aladdin risk management platform, which serves over 225 institutions.
According to BlackRock, eFront- which was snapped up by Bridgepoint for nearly €300m in 2015- will strengthen the alternatives capabilities of Aladdin.
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By GlobalDataBlackRock COO Rob Goldstein said: “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.”
BlackRock expects the transaction to be minimally dilutive to earnings per share.
The deal will be financed using corporate liquidity and debt.
BlackRock chairman and CEO Laurence Fink said: “We’re particularly excited about eFront’s global footprint, including its headquarters in Paris, which is a key market on the continent for BlackRock.”
Meanwhile, BlackRock said that it would buy back nearly 3.1 million of its shares.
The move, part of the firm’s existing repurchase programme, values each share at $412.84.
Four months ago, BlackRock agreed to buy a 4.9% equity stake in Envestnet, a wealth management software firm, for $122.8m.
