Lender Processing Services Completes Its Rise From ‘Foreclosuregate’
I have followed Lender Processing Services (LPS) for what seems like a very long time, a near lone voice on Seeking Alpha banging the table for LPS as a recovery play (see for example “Settlement By Lender Processing Services Clears Major Overhang” in early February). So, I find it a bit gratifying that all the work and patience have paid off, capped by news that Fidelity National (FNF) is joining with Thomas H. Lee to buy back LPS. LPS was spun off FNF just five years ago, so I find this M&A deal a bit surprising. I certainly was not anticipating anything like it.
The buyout value for LPS is supposedly around $2.9B. That prices LPS shares around $34. That just happens to be the price of LPS right before “foreclosuregate” broke, an appropriately symbolic completion of the company’s rise from foreclosuregate: