Data and analytics provider CoreLogic ended a month-long battle with two of its shareholders after reaching a definitive merger agreement with outside companies.
The company's board of directors approved an acquisition by private equity firms Stone Point Capital and Insight Partners to buy the company for $ 80 per share, or $ 6 billion. The prize is a 51% premium over CoreLogic's share price on June 25, 2020. The winning offer beat competing bids from real estate analyst CoStar Group for $ 6.7 billion and an undisclosed cash offer from another private equity giant , Warburg Pincus.
CoreLogic selected Stone Point and Insight's offering because, according to CEO Frank Martell's comments, they “see” the value and potential of its offerings. In the meantime, the new acquirers confirmed this and pointed to the “proprietary” and “powerful” data technology from CoreLogic.
The transaction – which is still subject to shareholder and regulatory approval – is expected to close in the second quarter. If so, this should be the final chapter in CoreLogic's hostile takeover saga.
The company has been at war with stakeholders Senator Investments and Cannae Holdings since June 2020, when the two first made an offer of $ 65 per share. After a series of back and forth moves that included denied due diligence, attempts to replace the entire CoreLogic board of directors, a revised offer for $ 66 per share, and the removal of three directors, CoreLogic management put the offers on appeal better deals for inadequate. Record sales in the third quarter of 2020 supported his position. CoreLogic's share price closed at $ 80.78 per share on February 3 and opened at $ 80.10 on February 4.
Neither Senator nor Cannae returned calls to confirm the current status of their stake in CoreLogic. The most recent public filings from December 2020 and January 2021 show that the couple together own approximately 15% of CoreLogic's outstanding shares.
Today's announcement is the latest in a series of investments by the new majority shareholders of CoreLogic. Stone Point invested in Roostify's Series C fundraising round and is the leading backer of Home Point Capital, which has just launched its IPO, while Insight led the Series B of SimpleNexus. Mergers and acquisitions played a huge role in the mortgage industry over the past year, with Ellie Mae, Black Knight and First American running the business.