06:35 AM EST, 12/03/2024 (MT Newswires) -- BlackRock ( BLK ) said Tuesday that it has entered a definitive agreement to fully acquire credit investment manager HPS Investment Partners for about $12 billion in company equity.

The equity will be issued by a subsidiary of BlackRock ( BLK ) and be exchangeable on a one-for-one basis into BlackRock ( BLK ) common stock.

The company will pay about 9.2 million units at closing and about 2.9 million units in about five years, as well as an additional up to 1.6 million units based on financial performance milestones in about five years. Combined, the company will issue a maximum of about 13.7 million shares of BlackRock ( BLK ) common stock upon exchange of the units.

BlackRock ( BLK ) and HPS will form a new private financing solutions business unit, which will have broad capabilities across senior and junior credit solutions, asset-based finance, real estate, private placements, and collateralized loan obligations, the company said.

The transaction is expected to close in mid-2025.