MIAMI—Fidelity National Financial laid down about $2.9 billion to acquire Lender Processor Services, Inc., a provider of integrated technology, services, data, and analytics to the mortgage and real estate industries. The price for all outstanding common stock is $33.25 per share.

Under the terms of the deal, Fidelity will pay 50% of the consideration for the Lender shares in cash and 50% in shares of Fidelity stock. The purchase price represents a 19% and 25% premium, respectively, to the prior 30-day and 60-day average closing prices for Lender's stock through May 22. May 22 was the last trading day before media reports regarding a potential transaction started circulating.

The companies are no strangers. In fact, Fidelity chairman William P. Foley, says he has “significant experience and familiarity” with Lender from its previous ownership of these businesses. He expects the combination to create a larger, broader, more diversified, and recurring revenue base for Fidelity.