Property information and analytics provider CoreLogic has announced the confirmation of its acquisition by private equity firms Stone Point Capital and Insight Partners for $80 per share in cash.
Shareholders voted to approve the acquisition this week in a move that will hopefully close the book on what has been a turbulent year for CoreLogic.
The firm first accepted the offer from Stone Point and Insight back in February following a months-long dispute with Senator Investment Group and Cannae Holdings, who attempted to oust CoreLogic’s board after it rejected an offer of $65 per share in July 2020.
The board was seemingly vindicated after agreeing to the much higher bid of $80 per share, but the deal was then thrown into disarrary after CoStar Group submitted an unsolicited acquisition proposal that was seen as potentially valuing the company even higher.
This surprise offer promised CoreLogic shareholders 0.1019 shares of CoStar common stock for each share they owned, rather than a cash buy-out, and was estimated to be worth around $90 per share when the bid was first submitted.
However, CoStar stock proved volatile in the weeks following the proposal, and after several revisions of the CoStar offer, it appears that CoreLogic shareholders have decided to opt for the safer option from Stone Point and Insight.
“This is a significant milestone for CoreLogic and a very positive outcome for our shareholders. With their overwhelming support, we expect to be able to close the transaction during the second quarter,” said CoreLogic Chairman Paul Folino.
Chuck Davis, CEO of Stone Point Capital, also commented: “Stone Point is excited to work with the CoreLogic leadership team to support the company’s next phase of growth. CoreLogic’s data and software platforms help power the housing and insurance industries, both of which are undergoing a digital transformation. We believe our financial services domain expertise and partnership can accelerate CoreLogic’s momentum as it delivers new innovative solutions to its customers.”
Deven Parekh, Managing Director at Insight Partners, added: “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 that we are one step closer to supporting CoreLogic in its next chapter of transformational growth.”
CoreLogic specified that the completion of the transaction remains subject to regulatory approval and 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.