Intercontinental Exchange Intrinsic Value Calculator – Intercontinental Exchange & Black Knight Agree to Sell Optimal Blue Business to Subsidiary

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Intercontinental Exchange ($NYSE:ICE) (ICE) is a global network of exchanges and clearinghouses that operates regulated financial and commodity markets. In a recent milestone, ICE and Black Knight Inc agreed to sell the Optimal Blue business to a subsidiary of ICE for $775 million. The acquisition will enable ICE to provide more comprehensive services to its customers in the mortgage industry. The agreement marks a major move for both companies, with Black Knight Shares surging following the announcement. Black Knight is a leading provider of technology, data and analytics to the mortgage and consumer loan industries, and Optimal Blue is one of the largest digital marketplaces for mortgage products in the United States.

With Optimal Blue, ICE will now have access to a comprehensive suite of products, services, and APIs that can help customers digitize their operations and better manage their financing needs. The acquisition of Optimal Blue is part of ICE’s larger strategy to expand its presence in the mortgage industry, as it looks to capitalize on the growing demand for digital solutions in this space. The agreement will also enable Black Knight to focus on developing its core technology and data offerings, while expanding its reach in the broader financial services industry. For both companies, it marks a significant step forward in transforming the mortgage industry into a more automated and efficient sector.

Share Price

On Tuesday, ICE’s stock opened at $116.2 and closed at $116.1, down 0.5% from its last closing price of 116.6. The Optimal Blue business offers advanced digital mortgage products and services to clients across the US. It also provides an industry-leading secondary mortgage market platform that serves as a centralized hub for the purchase and sale of mortgage loan trades between lenders and financial institutions. This acquisition will enable Black Knight to develop and deliver more advanced products and services to its clients, while providing a more integrated customer experience.

In addition, it will also allow Black Knight to expand its footprint in the mortgage industry. Through the transaction, the two companies will be able to combine their respective strengths in order to build a more robust, comprehensive platform that will benefit both current and potential customers. The transaction is expected to close later this year. Live Quote…

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

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Key Ratios Snapshot

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Analysis – Intercontinental Exchange Intrinsic Value Calculator

At GoodWhale, we have conducted an analysis of INTERCONTINENTAL EXCHANGE‘s fundamentals. According to our proprietary Valuation Line, the fair value of INTERCONTINENTAL EXCHANGE share is estimated to be around $118.3. However, at this moment, the stock of INTERCONTINENTAL EXCHANGE is traded at $116.1, which is a fair price but undervalued by 1.9%. More…

Peers

The company operates in four segments: Trading and Clearing, Data and Listings, Futures and Options, and Connectivity and Technology Solutions. ICE has a market capitalization of $38.72 billion and its competitors are London Stock Exchange Group PLC (LSEG), Singapore Exchange Ltd (SGX), and TMX Group Ltd (TMX).

– London Stock Exchange Group PLC ($LSE:LSEG)

London Stock Exchange Group PLC is a United Kingdom-based financial services holding company. The Company’s business activities include capital formation, global benchmarking and risk management. It operates through capital markets, post trade services and information services divisions. Capital markets division comprises equity and debt capital markets, including primary and secondary market activities, and global depositary receipts (GDRs). Post trade services division offers clearing, settlement, custody and information products and services for fixed income securities, derivatives, exchange traded products (ETPs), commodities and cash equities. Information services division comprises real-time market data, indices, analytics and trading platforms. It operates in over 50 countries and territories.

– Singapore Exchange Ltd ($SGX:S68)

Singapore Exchange Ltd has a market cap of 8.94B as of 2022. The company has a Return on Equity of 23.35%. SGX is a Singapore-based company that operates a securities and derivatives exchange. The company also offers clearing, settlement and depository services.

– TMX Group Ltd ($TSX:X)

TMX Group Ltd is a Canadian financial services company that operates exchanges for multiple asset classes including equities, fixed income, derivatives, and energy. The company has a market capitalization of 7.14 billion as of 2022 and a return on equity of 13.93%. TMX Group Ltd is headquartered in Toronto, Canada.

Summary

Intercontinental Exchange (ICE) has agreed to sell Black Knight’s Optimal Blue business to a subsidiary of ICE. This acquisition is driving an increase in Black Knight’s share price today. Investors are optimistic that the deal will expand the company’s capabilities and open up new opportunities for growth. The transaction is expected to be completed by the end of the year. Analysts suggest that the acquisition will bring in significant revenue for the company while creating a more diverse product offering to investors.

Additionally, the move should help ICE expand its presence in the mortgage industry. Thus, investors should be optimistic about the potential for increased returns in the near future.