BlackRock Inc., the world’s largest asset management firm, has officially closed the acquisition of Global Infrastructure Partners.
BlackRock agreed to acquire GIP on Jan. 12. It announced the successful completion of the acquisition on Oct. 1. The acquisition made BlackRock the world’s leader in infrastructure and the world’s largest provider of exchange-traded funds.
The acquisition of GIP involved a total consideration of $3 billion in cash and approximately 12 million shares of new BlackRock common stock, according to BlackRock’s most recent SEC 8-K filing. Around 30% of the total consideration, entirely in stock, was deferred and will be issued following post-closing events.
The acquisition of GIP would be BlackRock’s largest purchase since it acquired Barclays Global Investors for $13.5 billion in 2009. The company’s latest acquisition has enhanced BlackRock’s private-market assets under management by approximately 40% and expanded expected future revenues.
“Infrastructure represents a generational investment opportunity,” BlackRock Chairman and CEO Larry Fink said in a company press release. “Through the combination of BlackRock and GIP, we are well positioned to capitalize on the long-term structural trends that will continue to drive the growth of infrastructure and deliver superior investment opportunities for clients globally.”
BlackRock is a multinational investment company that provides investment, advisory, and risk management solutions with a goal of helping clients achieve financial well-being.
GIP is a leading independent infrastructure investor, focusing on energy, transport, water and waste, and digital sectors. It manages over $100 billion in client assets, including debt and infrastructure inquiries.
BlackRock’s stock price was $934.02 when the acquisition was finalized on Oct. 1. It rose to $960.74 on Oct. 4, closing at $949.19 by the end of the week. According to a BlackRock’s SEC filing on Sept. 13, BlackRock confirmed it expects to close the acquisition of GIP on Oct. 1 and is subject to regulatory approvals.
Following the acquisition of GIP, the company’s CEO Bayo Ogunlesi has officially joined BlackRock, with plans to be appointed to BlackRock’s Board of Directors.
“We are excited to embark on this new chapter as Global Infrastructure Partners, a part of BlackRock, with the goal of creating the premier global infrastructure investing firm,” Ogunlesi said in a BlackRock press release. “The combination of our institutional intellectual capital, investing and business improvement capabilities, global footprint, and corporate and government relationships will allow us to deliver attractive investments for our investors and innovative solutions for our customers.”
