Property data and analytics firm CoreLogic has agreed to be acquired by two private equity firms for about $6 billion.
Funds managed by Stone Point Capital and Insight Partners are set to snatch up all outstanding shares of CoreLogic for $80 per share. CoreLogic’s board of directors unanimously approved the transaction in what it termed as a “definitive merger agreement.”
Plans call for closing the transaction in the 2021 second quarter, pending shareholder and regulatory approvals and other closing conditions.
The agreed upon price reflects a 51 percent premium to CoreLogic’s share price on June 25, 2020, which was around the time it initially met with other investors to discuss an unsolicited bid to take the California-based real estate data company private.
CoreLogic Chairman Paul Folino indirectly noted the fact that CoreLogic dealt with a number of other suitors through a months-long process. Bloomberg reported last month that bidders included CoStar Group Inc. and a private equity group led by Warburg Pincus.
In November, CoreLogic disclosed that its board is conducting a strategic review of its operations, with a goal of “maximizing shareholder value.”
CoreLogic has faced uncertainty since June when it received an unsolicited bid from Cannae Holdings and Senator Investment Group for around $66 per share in cash to take the company private.
In November, CoreLogic announced that its board was conducting a strategic review of its operations, with a goal of maximizing shareholder value.
“The transaction is the culmination of our Board’s extensive review of strategic alternatives, which included engaging with numerous potential buyers,” Folino said in prepared remarks.
CoreLogic President and CEO Frank Martell said that Stone Point and Insight Partners were good choices as acquirers. He added that the company would work with its new owners to boost its performance and also “accelerate our digital transformation and growth.”
Chuck Davis, CEO of Stone Point Capital, noted that CoreLogic is a vendor and data provider in areas that Stone Point has long specialized, including the mortgage business, residential real estate and P/C insurance.
CoreLogic’s customers include insurance carriers, financial institutions and government agencies.
Plans call for financing 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 is serving as financial advisor to CoreLogic and Skadden, Arps, Slate, Meagher & Flom is serving as the company’s legal advisor. J.P. Morgan Securities and Wells Fargo Securities are acting as financial advisor to Stone Point Capital and Insight Partners. Kirkland & Ellis is serving as legal advisor to Stone Point Capital, and Willkie Farr and Gallagher is serving as legal advisor to Insight Partners.
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