Preqin faces UK CMA scrutiny after $3.2bn BlackRock acquisition announcement
Deal News | Dec 16, 2024 | EIN
The UK Competition and Markets Authority (CMA) has initiated a preliminary assessment of the anticipated acquisition of Preqin by BlackRock for $3.2 billion. This evaluation, which marks the onset of the CMA's merger inquiry, is aimed at scrutinizing the deal's potential effect on competition in the UK market. The authority is inviting insights from stakeholders to determine if the acquisition might lead to a substantive decrease in competitive conditions under the Enterprise Act 2002. Scheduled earlier this year, BlackRock's agreement to purchase Preqin would align Preqin's vast private market data and research tools with BlackRock's technological platform, Aladdin. Preqin, known for its comprehensive private market databases, is projected to generate approximately $240 million in recurring revenue for the fiscal year 2024, after maintaining a 20% annual growth rate for the past three years.
Sectors
- Financial Services
- Data and Analytics
Geography
- United Kingdom – The UK Competition and Markets Authority is involved in assessing the competitive impact of the BlackRock-Preqin merger in the UK market.
- Global – Both BlackRock and Preqin have a worldwide presence, thus this acquisition has implications beyond just the UK.
Industry
- Financial Services – BlackRock is a major player in the financial services industry, and its acquisition of Preqin, a data provider, reflects strategic expansion within this sector.
- Data and Analytics – Preqin is renowned for its private markets data and analytics, making this a key industry involved in the acquisition by BlackRock.
Financials
- 3.2 billion – The amount in USD that BlackRock plans to pay for the acquisition of Preqin.
- 240 million – The projected recurring revenue for Preqin in the fiscal year 2024.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| BlackRock | Bidding Company | Company | A major global investment management corporation. |
| Preqin | Target Company | Company | An independent provider of private markets data. |
| UK Competition and Markets Authority (CMA) | Government | Government | A regulatory body assessing the potential impact of the acquisition on competition. |