On Friday, C BlackRock Inc. made a noteworthy move by confirming its acquisition of Global Infrastructure Management LLC, a prominent infrastructure investment fund.
The deal, valued at $12.5 billion, involves a combination of $3 billion in cash and around 12 million shares of BlackRock’s common stock. Notably, 30% of the total consideration, exclusively in stock, will be deferred for issuance approximately five years later, contingent upon specific post-closing conditions.
BlackRock anticipates finalizing the acquisition in the third quarter of this year. The company highlighted that the agreement is poised to be mildly accretive to its as-adjusted earnings per share and operating margin during the first full year post-close. In a strategic move, Bayo Ogunlesi, the Founding Partner, Chairman, and CEO of GIP, is set to join BlackRock’s Board of Directors following the successful completion of the acquisition.
This move signifies a deeper integration of expertise within the industry and positions BlackRock for continued growth and success in the evolving landscape of infrastructure investments.
Investment Performance and Capital Management
BlackRock’s investment performance shone brightly, with a substantial portion of actively managed assets surpassing benchmarks or peer medians in both fixed income and equity. Reflecting confidence in the company’s financial well-being, the Board of Directors greenlit a 2% uptick in the quarterly cash dividend, now standing at $5.10 per share, underlining their dedication to shareholder returns.
In summary, BlackRock’s 2023 full-year results depict a company skillfully navigating market fluctuations and positioning itself for future growth.
The acquisition of GIP further emphasizes BlackRock’s commitment to broadening its offerings in the infrastructure investment realm, resonating positively with investors seeking enduring, inflation-protected returns.