BlackRock, an American global investment management corporation, said last Friday (March.22nd) that it is close to acquiring eFront and its employees from private-equity firm, Bridgepoint, for $1.3bn (£983m) in cash.
If the 1.3bn deal is approved, BlackRock will then integrate eFront’s software with its investment platform Aladdin, Reuters reported.
At first, the firm used Aladdin as an internal tool at the company before becoming the linchpin of BlackRock’s plan to boost revenue from technology.
The firms Aladdin system is used by investment managers to oversee risk and make investment decisions.
On Thursday (March.21st), HSBC became the latest firm to sign an agreement to adopt BlackRock’s Aladdin investment management software to its wealthy customers, according to Reuters.
BlackRock said it would repurchase 3.1m shares at $412.84 (£312) apiece under its existing repurchase program.
The share repurchase deal is expected to close on Monday (March.25th).