BlackRock agrees to buy a British data for $3.2 billion

BlackRock has agreed to buy British data firm Preqin for 2.55 billion pounds ($3.23 billion) in cash in an expansion by the world’s largest asset manager into the private markets data sector.

According to CNN, BlackRock said in a statement that the acquisition will support its Aladdin technology business by combining data, research and the investment process of fund managers.

Aladdin is an artificial intelligence system, owned by BlackRock, that aims primarily to reduce investment risks by providing a way to view and manage daily investments for professional investors.

BlackRock added in its statement that it is expected to achieve about $240 million in recurring revenues for Preqin in 2024, after growing by approximately 20 percent on an annual basis in the past three years.

Preqin, which was founded in 2003, specializes in data related to the alternative investment industry, and the UK-based company has subscribers in more than 90 countries, according to the British government’s corporate registry.

Reuters reported in early June 2024 that the London Stock Exchange Group and Standard & Poor’s Global were among potential bidders for Preqin.

“Together with Perkin, we can make investing in private markets easier and more accessible while building a better connected platform for investors and fund managers,” said Sudhir Nair, global head of BlackRock’s Aladdin.