Property data and analytics firm CoreLogic has agreed to acquire two private equity firms for approximately $ 6 billion.
Funds managed by Stone Point Capital and Insight Partners will acquire all of CoreLogic's outstanding shares for $ 80 per share. CoreLogic's board of directors unanimously approved the transaction in what it termed a “definitive merger agreement”.
The transaction is scheduled to close in the second quarter of 2021, pending shareholder and regulatory approvals and other closing conditions.
The agreed-upon price reflects a 51 percent premium to CoreLogic's stock price on June 25, 2020 around the time it initially met other investors to discuss an unsolicited offer to take the California-based real estate data company private.
CoreLogic Chairman Paul Folino indirectly noted that CoreLogic treated a number of other suitors through a months-long process. Bloomberg reported last month that bidders CoStar Group Inc. and a private equity group led by Warburg Pincus.
In November, CoreLogic announced that its board of directors is conducting a strategic review of its operations, with the aim of "maximizing shareholder value."
CoreLogic has been facing uncertainty since June received an unsolicited offer from Cannae Holdings and Senator Investment Group for about $ 66 a share in cash to get the company private.
In November, CoreLogic announced that the board of directors was conducting a strategic review of its operations with the aim of maximizing shareholder value.
"The transaction is the result of our Board's extensive review of strategic alternatives, including involving numerous potential buyers," Folino said in prepared comments.
CoreLogic President and CEO Frank Martell said Stone Point and Insight Partners were good choices as acquirers. He added that the company would work with its new owners to improve its performance and also "accelerate our digital transformation and growth."
Chuck Davis, CEO of Stone Point Capital, noted that CoreLogic is a provider and data provider in areas that Stone Point has long specialized in, including the mortgage industry, residential real estate and P / C insurance.
CoreLogic's clients include insurance companies, financial institutions and government agencies.
Plans call for financing of the transaction through a combination of committed equity financing provided by funds managed by Stone Point Capital and Insight Partners, as well as committed debt financing provided by J.P. Morgan Securities LLC.
Evercore serves as financial advisor to CoreLogic and Skadden, Arps, Slate, Meagher & Flom acts as legal counsel to the company. J.P. Morgan Securities and Wells Fargo Securities are acting as financial advisers to Stone Point Capital and Insight Partners. Kirkland & Ellis serves as legal counsel to Stone Point Capital and Willkie Farr and Gallagher as legal counsel to Insight Partners.
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