BlackRock Acquires Aperio for $1.05 Billion

  • The company said that it expects the transaction to be completed in the first quarter of next year.
  • The electric car sector broke out on Monday.
  • Blink Charging's stock price soared 48.3% on Monday to $33.62.

BlackRock, the world’s largest asset management company, announced on Monday that it will acquire Aperio Group, an investment management company headquartered in Sausalito, California, for $1.05 billion in cash. BlackRock said the acquisition will increase its separately managed account (SMA) assets by approximately 30% to more than $160 billion.

BlackRock, Inc. is an American global investment management corporation based in New York City. Founded in 1988, initially as a risk management and fixed income institutional asset manager, BlackRock is the world’s largest asset manager, with $7.4 trillion in assets under management as of end-Q4 2019.

The company said that it expects the transaction to be completed in the first quarter of next year. It plans to operate the acquired Aperio under one independent brand and vertically integrate its team with BlackRock’s US wealth consulting business.

“This is really one of the fastest-growing parts of wealth management,” Martin Small, BlackRock’s head of U.S. Wealth Advisory, said in an interview. “We’ve been longtime admirers of Aperio.”

U.S. Stocks Rise More Than Three Times in Two Weeks

The electric car sector broke out on Monday. Tesla, for the first time, closed above the psychological threshold of $500. Brokerage Wedbush raised Tesla’s best-case target price by 25% to $1,000.

China’s concept stocks, “new car-making forces,” are also gaining momentum. Xiaopeng Motors close up 33.98%. Ideal car rose more than 14%, and Weilai rose more than 12%.

However, their growth is far less than that of an electric vehicle charging station company called Blink Charging. The company’s stock price soared 48.3% on Monday to $33.62. Since November, it has risen 333.25%, and it has risen by about 1,700% in the past year.

This has attracted the attention of the bearer Citron Research, claiming that its valuation is meaningless, and even a shame for electric car stocks. However, the A-share market on Tuesday was still affected by the boom in the US stock market for electric vehicles. As of the close of the afternoon market, the compiled charging pile index rose more than 2%.

Blink was established in 2009, and is the second largest electric vehicle charging network company in the United States. It currently has more than 15,000 charging stations in the United States, including secondary charging piles and high-voltage fast charging piles.

Electric car

According to Blink’s business model, in many cases, these charging stations are owned by Blink, and part of the income is shared with the owners of the area. In other cases, these charging stations are not owned by Blink, and Blink only charges service fees.

From a business perspective, Blink’s total revenue in the first nine months of this year increased by 84% to $3.8 million, exceeding the total revenue of $2.8 million in 2019. However, in the third quarter of 2020, the company still has a net loss of $3.9 million.

The stock price has risen due to a series of announcements made by the company recently. The first is the introduction of new Blink charging stations. The second is the company’s acquisition of 200 stations in downtown Los Angeles in the third quarter of this year. The third is to sign an agreement with Gaowei Property to promote Blink electric vehicle charging stations to the company’s US customers .

Citron Research said that the transaction is expected to be greatly diluted soon, so that management can continue to deceive the public. Citron even suggested Blink investment consider buying Switchback Energy Acquisition (SBE), its market share up to 73%.

This is based on Blink’s third-quarter revenue of less than $1 million. However, the current market value has exceeded $1 billion. There are other institutions that have also given the view that the stock price is too high when the Blink stock price exceeds $15.

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Doris Mkwaya

I am a journalist, with more than 12 years of experience as a reporter, author, editor, and journalism lecturer." I've worked as a reporter, editor and journalism lecturer, and am very enthusiastic about bringing what I've learned to this site.  

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