Fidelity National to Buy LPS in $2.9 Billion Deal
Fidelity National Financial Inc. (FNF), the largest U.S. title insurer, agreed to acquire its former unit, Lender Processing Services Inc. (LPS), to expand in the business of providing and analyzing mortgage data.
The cash-and-stock deal values LPS at $33.25 per common share, or about $2.9 billion, Jacksonville, Florida-based Fidelity National said today in a statement. LPS, also based in Jacksonville, closed at $29.11 on May 22, before it was first reported that Fidelity National was in talks to acquire the firm.
Fidelity National is expanding in housing-linked businesses amid a recovery in the U.S. real estate market. LPS has technology that’s used by lenders throughout the mortgage process, from origination to foreclosure.
“This combination will create a larger, broader, more diversified and recurring revenue base for FNF and makes us the nation’s leading title insurance, mortgage technology and mortgage services provider,” Fidelity National Chairman William Foley said in the statement.