BlackRock is to buy alternative investment-focused French software provider eFront for $1.3bn.
The asset manager will combine e-Front with its Aladdin risk analytics platform, a move that is expected to strengthen Aladdin’s alternatives and multi-asset investment capabilities, the firm said.
BlackRock will pay $1.3 billion in cash for 100% equity from eFront's employees and European private equity firm Bridgepoint.
Paris, France-based eFront, which serves more than 700 clients in 48 countries, is an end-to-end alternative investment management software firm that specializes in managing the due diligence, portfolio planning, performance and risk analytics processes across a range of alternative asset classes.
Bridgepoint bought the firm in 2015 for approximately €300 million, or about $341 million.
'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 Larry 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,' he said. 'eFront immediately deepens our presence and technology capabilities in France, Europe and across the globe.'
In November last year, BlackRock struck another technology-focused deal in which the asset manager paid $123 million for a 4.9% stake in Envestnet.
The deal is expected help BlackRock integrate its digital wealth technology into Envestnet’s platform.
BlackRock had $5.98 trillion in assets under management at the end of last year.
