BlackRock to acquire GIP for $3B in cash and $12M in stock, sees accretion

BlackRock and Global Infrastructure Partners, or GIP, an independent infrastructure fund manager, jointly announce that they have entered into an agreement for BlackRock to acquire GIP for total consideration of $3B of cash and approximately 12M shares of BlackRock common stock. Under the terms of the transaction, BlackRock will acquire 100% of the business and assets of GIP for total consideration of $3B in cash and approximately 12M shares of BlackRock common stock. Approximately 30% of the total consideration, all in stock, will be deferred and is expected to be issued in approximately five years, subject to the satisfaction of certain post-closing events. BlackRock intends to fund the cash consideration through $3B of additional debt. BlackRock is currently rated AA- with S&P and Aa3 with Moody’s, and this transaction is not expected to meaningfully change its leverage profile. The deal is expected to be modestly accretive to BlackRock’s as-adjusted earnings per share and operating margin in the first full year post-close. The transaction is expected to close in the third quarter of 2024 subject to customary regulatory approvals and other closing conditions.