BlackRock Inc (NYSE:BLK) has made another bold step in the alternative investment space with the acquisition of UK fund data firm Prequin for £2.55 billion, outbidding London Stock Exchange Group PLC (LSE:LSEG).
S&P Global was also outbid in the auction process, according to the reports today.
Financial data and research, sparked by the explosion of ETFs and other market-linked products, have seen M&A accelerate across the market in recent years.
Underlining the trend, BlackRock said that the acquisition would complement its Aladdin tech business by bringing together data, research, and investment processes for fund managers.
Aladdin is a platform that allows fund managers to view and manage daily investments in real-time.
"Together with Preqin, we can make private markets investing easier and more accessible while building a better-connected platform for investors and fund managers," said Sudhir Nair, global head of BlackRock's Aladdin.
Preqin is expected to generate about $240 million of recurring revenue in 2024 and has grown approximately 20% per year in the last three years, BlackRock said in its statement.
Founded in 2003, Preqin specialises in data about the alternative investment industry.