Real estate information and technology firm Lender Processing Services is once again under the umbrella of title insurer Fidelity National Financial Inc. now that a $2.9 billion deal to acquire the company has closed.
FNF issued 25.9 million shares of common stock to shareholders of LPS as the stock component of the deal, which included $28.10 in cash and $9.04 in FNF common stock for each share of LPS common stock.
The purchase of LPS creates a source of new business for FNF as the market demand for bundled technology and services grows across the mortgage industry, American Banker reported.
Both companies dominated their respective core areas, the news outlet said, noting that FNF issues more title insurance policies than any other title company and LPS’ Mortgage Servicing Package is the system of record for about half of all U.S. mortgages, as measured by dollar volume.
The Federal Trade Commission approved the deal at the end of last month with the caveat that six title plants — databases used to determine the title status of a real property — in Oregon be sold to resolve antitrust concerns.
Source: American Banker
