DALLAS - An affiliate of Paceline Equity Partners, LLC, a private equity manager based in Dallas, has completed a debt investment in a subsidiary of Constellation Software, Inc. (TSX: CSU), as per an announcement made today. This move comes as part of a broader transaction involving the sale of Optimal Blue, a business unit of Black Knight (BMV:BKIN), Inc., to Constellation.
The investment stems from a merger agreement dated July 17, 2023, between Intercontinental Exchange, Inc. (NYSE: NYSE:ICE) and Black Knight, Inc., which included the divestiture of Optimal Blue. To facilitate regulatory approval for the merger, a $500 million promissory note payable by Constellation to an affiliate of Black Knight needed to be sold, a requirement that Paceline has now fulfilled by acquiring the note.
Optimal Blue, established in 2002 and operating from Plano, Texas, is recognized for its technology in the mortgage secondary marketing sector. It supports over $1.1 trillion in mortgage locking and trading transactions each year. The company's solutions are integral to the operations of numerous lenders, brokers, investors, and various institutions, including government agencies.
Sam Loughlin, CEO of Paceline, expressed enthusiasm for the future growth of Optimal Blue under Constellation's ownership, citing the firm's prior experience in the mortgage industry as a key factor in the swift and assured completion of the transaction. Leigh Sansone, Chief Investment Officer at Paceline, also highlighted the team's deep understanding of the mortgage market, which instilled confidence in this investment opportunity.
Paceline Equity Partners specializes in value-oriented and special situation investments across various sectors, with a senior leadership team that boasts an average of 20 years of experience. The firm's expertise includes managing one of the nation's largest non-bank mortgage originators.
The information in this article is based on a press release statement.
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