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BlackRock (BLK) Closes eFront Acquisition for $1.3 Billion

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BlackRock, Inc. (BLK - Free Report) recently completed the acquisition of Paris-based eFront for $1.3 billion in cash. The transaction, announced this March, will likely be minimally dilutive to BlackRock’s earnings per share.

Operations of eFront, which provides end-to-end alternative investment management software and solutions, are being merged with BlackRock’s investment operating platform — Aladdin. This will expand Aladdin’s alternatives capabilities and also offer a whole portfolio technology solution to clients.

Further, eFront, which serves more than 700 clients in 48 countries, is expected to help BlackRock further expand its global presence.

Commenting on the deal, eFront’s CEO Tarek Chouman stated, “Joining BlackRock, adopting its user-provider model and integrating with Aladdin means that our investor, fund administrator and fund manager clients will benefit from constantly elevated standards and innovative product features.”

Additionally, BlackRock’s chief operating officer Rob Goldstein noted, “eFront will extend Aladdin’s end-to-end processing capabilities in alternative asset classes, enabling clients to get an enterprise view of their portfolio.”

Notably, BlackRock’s robust global presence, broad product diversification, revenue mix and steadily improving assets under management will likely bolster top-line growth. With a strong liquidity position, the company remains well positioned to grow through acquisitions.

Shares of BlackRock have gained 9.1% over the past three months compared with 5.5% growth registered by the industry.



Currently, the stock flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Key Picks

Cohen & Steers Inc’s (CNS - Free Report) shares have rallied 33%, over the past three months. Also, the company’s earnings estimate for the current year has been revised 6.9% upward over the past 60 days. The stock sports a Zacks Rank of 1, at present.

Franklin Resources, Inc’s (BEN - Free Report) shares have gained 8.8%, in three months’ time. Further, the company’s earnings estimate for the ongoing year moved 9.3% north in the past 60 days. The stock flaunts a Zacks Rank of 1, currently.

Oaktree Capital Group, LLC’s shares have rallied 20.2%, in the past three months. In addition, this Zacks #1 Ranked company’s earnings estimate for 2019 moved up 4.5%, in 60 days’ time.

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