IRVINE, CA—CoreLogic, a leading global property information, analytics and data-enabled services provider, has entered into a definitive agreement to acquire FNC, Inc., a leading provider of real estate collateral information technology and solutions that automate property appraisal ordering, tracking, documentation and review for lender compliance with government regulations. The deal includes a purchase price of $475 million.
CoreLogic says the move expands its Valuation Solutions Group, noting that FNC delivers deep expertise in appraisal compliance, workflow best practices, and process efficiency to mortgage lenders and servicers, appraisal management companies, secondary and capital markets firms as well as property and casualty insurance companies.
"We are very pleased to add the FNC management and staff to the CoreLogic family. FNC is a pioneer in developing unique collateral information and technology platforms for the U.S. lending ecosystem," said Anand Nallathambi, president and CEO of CoreLogic. "Its business has been built around recurring, high-margin revenue streams. The acquisition of FNC is an important step in our development of a world-class property valuation solutions capability."
"FNC's platforms, together with our existing valuation-related assets and our recent acquisition of LandSafe Appraisal Services, allow us to gain operational scale and expand the value proposition of our VSG."
"CoreLogic's VSG will be the conduit through which we will seamlessly deploy our broad suite of property valuation capabilities. The VSG will offer best-in-class content, analytics and workflow platforms which employ our Gen2 technology and mobility capabilities," added CoreLogic chief operating and financial officer Frank Martell. "Improving the quality and economics of property valuation is a major imperative for the real estate industry. Through the VSG, CoreLogic will be well positioned to bring comprehensive and compelling solutions to the marketplace."
The transaction is expected to close during the first quarter of 2016 and is subject to customary closing conditions including regulatory clearance. The purchase price of $475 million represents approximately 13.5 times pro forma projected 2016 adjusted EBITDA. The transaction is expected to be accretive to 2016 financial results excluding one-time reductions from transaction-related fees and transitional accounting items. The transaction will be funded using cash on hand and debt.
Evercore acted as exclusive financial advisor to CoreLogic and provided a fairness opinion for the transaction and O'Melveny & Myers LLP served as legal advisor. FNC was represented by Wells Fargo Securities as exclusive financial advisor and Butler Snow LLP as legal advisor.
Following the close of the transaction, FNC operations will be consolidated within the VSG which is reported within CoreLogic's Data and Analytics segment. The company expects to provide further and more detailed updates on its VSG strategy including FNC in conjunction with its release of 2016 financial guidance during January 2016.
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