Property information and analytics provider CoreLogic has turned down an unsolicited acquisition offer from Senator Investment Group LP and Cannae Holdings Inc.
Following consultation with independent financial and legal advisors, CoreLogic’s Board unanimously rejected the offer to acquire all of its outstanding common shares for $65.00 per share in cash.
The Board said the offer significantly undervalued the company, raised serious regulatory concerns, and was not in the best interests of its shareholders.
“Our Board is open to all viable paths to increasing shareholder value, and we are willing to meet with Senator and Cannae, but given CoreLogic’s strong momentum, increasing margins, accelerating growth, and multi-faceted value-creation model, we are unanimous in our belief that CoreLogic will be able to deliver significantly more value to shareholders than this opportunistic proposal,” explained Chairman of the Board Paul Folino.
“The proposal also fails to address the serious regulatory concerns raised by significant overlaps between CoreLogic and the network of companies associated with Cannae’s Chairman, including Black Knight and Fidelity National,” he continued.
At the same time, CoreLogic said it expects full-year 2020 financial results to exceed previously issued revenue, EBITDA and EPS guidance ranges, mainly due to continued market share gains and operating leverage.
Full 2020, the updated revenue guidance range is now $1.84 billion to $1.88 billion, up from the previous range of $1.69 billion to $1.73 billion.
“We are seeing the benefits of our strategic realignment, with significant new business wins and continued growth in market share, revenues, free cash flow and EPS in 2020 driven by growth in the core mortgage and insurance and spatial businesses,” said Folino.
“CoreLogic today is far more than a play on U.S. mortgage volumes, and our materially increased full-year 2020 financial guidance and new 2021 and 2022 guidance underscore the Board’s confidence that our strategy is working.”
“In addition, we have increased CoreLogic’s share repurchase authorization to $1 billion, demonstrating our confidence in the Company’s prospects as well as our ongoing commitment to returning capital to shareholders.”