BlackRock makes billion-dollar bet on real estate analytics

The world's largest asset manager agreed to buy French software provider eFront for $1.3B

Mar.March 25, 2019 09:05 AM

Blackrock CEO Laurence Douglas Fink (Credit: Getty Images)

In an attempt to further diversify its products, BlackRock is pushing further into the tech sector with the $1.3 billion acquisition of a real estate analytics firm.

The firm will wholly acquire French company eFront, which offers real estate investors and private equity firms analytics on their portfolio’s performance, and provides guidance on adhering to accounting and regulatory obligations, according to Bloomberg.

eFront CEO Tarek Chouman (Credit: Twitter)

As the world’s largest asset manager with $6 trillion under management, BlackRock is seeking to offer more products in the tech sector. It reportedly outbid IHS Markit for eFront, which is also attempting to muscle its way into the sector.

Aladdin, another firm BlackRock purchased, is used by its customers — including pension funds and insurance companies — to generate risk management strategies to reduce the effect on holdings. Increased demand for Aladdin reportedly drove tech revenues for BlackRock last year.

BlackRock has also upped the ante on its real estate products. In the third quarter of last year, it increased its stake in brokerage RE/MAX by 5.2 percent, to 15.2 percent, a portion valued at $114 million.

Launched in 1999, eFront reportedly has 700 clients across 48 countries as of 2018. The analytics firm was reportedly bought by Bridgepoint in 2015 for 300 million euros. [Bloomberg] — David Jeans

Related Articles

Eric Gordon

Eric Gordon on the evolution of the residential data game — and how to stay competitive in the new world

Big Tech locations in NYC

MAP: Here’s a look at all the Big Tech locations in NYC

What will proptech look like in 2019 and beyond?

What will proptech look like in 2019 and beyond?

From left: Amy Brandt and Dennis Gilmore

First American to buy Docutech for $350M

NestApple head broker Nicole Fishman, president Stephen Kalifowitz, RentHop founder Lee Lin and RoomZoom founder Elien Becque

Broker-fee ban could boost some startups, doom others

House Canary CEO & co-founder Jeremy Sicklick (Credit: iStock)

Home-valuation startup closes $65M funding round

City Council Speaker Corey Johnson (Credit: Getty Images, iStock)

City Council wants more oversight of “ghost kitchens”

Kitopi CEO Mohamad Ballout (Credit: Kitopi and iStock)

“Smart” kitchen and delivery startup raises $60M for US expansion