SANTA ANA, Calif. (AFX) - First American Corp., a title insurer and specialized business information provider, said Monday it acquired privately held CoreLogic Systems Inc., which makes mortgage-assesment software, in a bid to boost its mortgage risk analytics business.
Under the agreement, Sacramento Calif.-based CoreLogic Systems Inc. will merge with First American's Real Estate Solutions division, and CoreLogic shareholders will receive class A shares of the company.
First American owns 82 percent of the new company while CoreLogic's stockholders hold 18 percent. CoreLogic investors also received a $100 million payment for the purchase.
CoreLogic posted revenue of $74 million last year, according to a company statement from First American Corp.
'This merger is a major milestone in our strategy to revolutionize the mortgage risk management process,' said Parker S. Kennedy, chairman and chief executive of First American Corp. 'This transaction unlocks value by creating a single, unified company with the unique data and predicative analytics resources that lenders, investors and consumers need throughout the mortgage lending and securitization process,' he added.
First American said the purchase would be neutral to its earnings in 2007.
George Livermore, currently president of First American's Property Information and Services segment, has been named president of the new company.
Shares of First American Corp. rose $1.39, or 3.2 percent, to $44.73 on the New York Stock Exchange.
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© 2007 AFX News
