CoreLogic, a US-based financial services company, has agreed to take full ownership of Canadian insurtech Symbililty Solutions, in a deal worth C$159.5m ($121.9m).
Image: Canadian insurtech Symbililty to be fully acquired by CoreLogic. Photo: courtesy of Helloquence/Unsplash.com.
The US company, which currently holds around 28% stake in Symbility, expects to expand its insurance and international footprint, through the transaction.
Symbility chairman and CEO James Swayze said: “CoreLogic has been a supportive minority shareholder and data provider for a number of years and the combination of Symbility’s leading claims platform and development capabilities with CoreLogic’s unmatched property data and analytics is a natural evolution that will benefit our customers, employees and shareholders.”
Established in 2004, Symbility provides subscription and cloud-based property insurance claims workflow solutions for the property & casualty insurance industry.
The Canadian insurtech also offers a range of enterprise mobile and application software solutions. Headquartered in Toronto, the company has operations across the US, Canada, Netherlands, the UK, Germany, Australia and New Zealand.
CoreLogic president and CEO Frank Martell said: “Further scaling our insurance and international footprint offers the potential for significant non-cyclical growth in line with our long-term goal of sourcing at least 50% of our revenues from non-U.S. mortgage.
“In addition to the obvious financial benefits and synergies, the combination of CoreLogic and Symbility should yield significant future growth opportunities through the introduction of new products, services and workflow tools which draw from a wide range of unmatched gold-standard data assets, platforms and analytical capabilities.”
Martell further said that the combination of CoreLogic’s underwriting and geo-spatial data and analytics capabilities and also its property-related data assets with Symbility will enable the US firm to offer its clients with new and unique insights into underwriting property and natural hazard risk coverage. The combination is also expected to help in accurate and efficient processing of claims.
As per the terms of the agreement, CoreLogic will acquire all the shares of Symbility it previously did not own for C$0.615 ($0.47) per share in cash. Further, all holders of outstanding stock options of the Canadian insurtech will receive the “in-the-money” value of such stock options, less applicable withholdings, said CoreLogic.
The deal is anticipated to be completed by the year end based on approval of Symbility shareholders, court approval and closing of other customary closing conditions.