BlackRock (NYSE:BLK), an asset management and investment firm, is acquiring U.K. data provider Preqin for £2.55 billion, or about $3.2 billion in cash. This acquisition aims to simplify and enhance access to private market investing. The deal is expected to close before the end of the year.
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Preqin is an independent provider of data solutions in private markets.
Rationale Behind the Deal
BlackRock is acquiring Preqin to strengthen its data capabilities and expand into private-market investments. Preqin’s data and insights will complement BlackRock’s portfolio, aiding investors in making better decisions.
As investments in private markets are growing rapidly, BlackRock aims to establish a solid position in this space through acquisitions.
Preqin’s acquisition is BLK’s second major purchase this year. Earlier in January, BLK acquired Global Infrastructure Partners for around $12.5 billion to diversify its offerings beyond stocks and bonds.
What Is BlackRock’s Target Price?
Overall, the Street has a Strong Buy consensus rating on the company, It has 11 Buy and two Sell recommendations. The analysts’ average price target on BLK stock is $910.67, implying 15.67% upside potential from current levels. Shares of the company are up 16% over the past year.
