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.
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.
