CoreLogic, the Irvine, Calif.-based property data and analytics firm, has agreed to acquire the outstanding shares of Symbililty Solutions Inc. not already owned by CoreLogic.
CoreLogic currently holds approximately a 28 percent ownership interest in Symbility.
Symbility, which is headquartered in Toronto and founded in 2004, provides subscription and cloud-based property insurance claims workflow services for the property/casualty insurance industry. In addition, it provides enterprise mobile and application software. The company operates in the U.S., Canada, the United Kingdom, Germany, Netherlands, Australia and New Zealand.
Under the terms of the agreement, CoreLogic will acquire all outstanding common shares of Symbility not owned by CoreLogic or its affiliates for C$0.615 (US$.0469) per share in cash. In addition, all holders of outstanding stock options of Symbility will be entitled to receive the “in-the-money” value of such stock options, less applicable withholdings.
CoreLogic said it intends to fund the acquisition of Symbility using cash on hand and available amounts under its revolving credit facility.
“Symbility expands our footprint in property and casualty insurance domestically and in key markets around the globe,” said Frank Martell, president and chief executive officer of CoreLogic.
“Further scaling our insurance and international footprint offers the potential for significant non-cyclical growth in line with our long-term goal of sourcing at least 50 percent of our revenues from non-U.S. mortgage,” he added.
CoreLogic’s revenues of $1,851 million in 2017 were down five percent from 2016, which the firm attributed to an estimated 20 percent decrease in U.S.mortgage market.
Martell said the combination of CoreLogic and Symbility should yield “significant future growth opportunities” through the introduction of new products, services and workflow tools.
The transaction is expected to close by the end of 2018 and is subject to Symbility shareholder and option-holder approval, court approval, certain third-party consents and customary closing conditions.
CoreLogic said the acquisition is expected to be accretive to 2019 financial results excluding one-time integration costs as well as reductions in acquired deferred revenue and other purchase accounting adjustments.
BMO Capital Markets is acting as financial adviser to CoreLogic on the transaction.
In April. CoreLogic closed on its purchase of Oklahoma-based a la mode technologies, LLC (a la mode), which provides subscription based software for appraisers facilitates the aggregation of data, imagery and photographs in a GSE compliant format for the completion of U.S. residential appraisals.
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