Property information and analytics provider CoreLogic has accepted an acquisition offer from private equity firms Stone Point Capital and Insight Partners that values the company at $80 per share.
CoreLogic has been embroiled in acquisition disputes since July 2020 when it rejected an offer of $65 per share from investors Senator Investment Group and Cannae Holdings.
But in October, CoreLogic reported that it had received multiple acquisition offers valuing the company at or above $80 per share.
And now, CoreLogic’s refusal to capitulate to Senator and Cannae appears to have paid off, as the company has secured a takeover deal far in excess of the original $65 per share offer.
Stone Point and Insight will acquire all outstanding shares of CoreLogic for $80 per share in cash, representing an equity value of approximately $6.0 billion and a premium of 51% to CoreLogic’s unaffected share price on June 25, 2020.
“This is a significant milestone for CoreLogic and a very positive outcome for our shareholders who will receive exceptional value for their shares in cash with a high degree of regulatory certainty and a closing expected in the near term,” said CoreLogic Chairman Paul Folino.
“The transaction is the culmination of our Board’s extensive review of strategic alternatives, which included engaging with numerous potential buyers.”
CoreLogic President and CEO Frank Martell also commented: “Stone Point and Insight Partners are highly respected investors who recognize the value and potential of CoreLogic’s digital content, solutions and market-leading platforms that power the housing economy. We look forward to working closely with Stone Point and Insight to build on our record financial and operating performance and accelerate our digital transformation and growth,” Martell added.
Chuck Davis, CEO of Stone Point Capital, further stated: “CoreLogic is a mission critical vendor and data provider across industry sectors in which Stone Point has specialized over the past 20 years, including mortgage, residential real estate and P&C insurance.”
“CoreLogic’s proprietary data assets are increasingly important to its customers, and we look forward to leveraging our network within the broader financial services industry to support the company’s next phase of growth.”
“At Insight Partners we focus on partnering with clear technology leaders that define and transform their markets through world-class software and data,” said Deven Parekh, Managing Director at Insight Partners. “What we found in CoreLogic is a market leader with a long history of serving customers with powerful data technology and a future vision to innovate across the real estate ecosystem. We are excited to support CoreLogic in its next chapter of transformational growth.”
The transaction will be financed 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.
It is expected to close in the second quarter of 2021 subject to shareholder approval, regulatory approvals, and other customary closing conditions.
Evercore is serving as financial advisor to CoreLogic and Skadden, Arps, Slate, Meagher & Flom LLP is serving as the Company’s legal advisor, while J.P. Morgan Securities LLC and Wells Fargo Securities, LLC are acting as financial advisor to Stone Point Capital and Insight Partners.
Additionally, Kirkland & Ellis is serving as legal advisor to Stone Point Capital, and Willkie Farr and Gallagher is serving as legal advisor to Insight Partners.