Fidelity National Financial, Inc. (FNF), a provider of title insurance and transaction services to the real estate and mortgage industries, announced the closing of its acquisition of Lender Processing Services, Inc. (LPS).
"We are excited to consummate the LPS acquisition and bring its market-leading technology solutions and services back into the FNF family," said FNF Chairman William P. Foley, II. "This combination creates a larger, broader, more diversified and recurring revenue base for FNF and makes us the nation’s leading provider of transaction services and technology solutions to the real estate and mortgage industries.
We also believe that there will be future complementary acquisition opportunities, particularly in the core mortgage technology business, that will serve to enhance organic growth. This is a strategic acquisition that we believe will provide a platform for future growth opportunities that can continue to create significant value for our shareholders."
The total consideration paid for a share of LPS common stock will be $37.14, consisting of $28.10 in cash and $9.04 in FNF common stock, with the value of the stock component calculated as the product of the average FNF common stock price of $31.459 and the Exchange Ratio of 0.28742.
FNF will issue approximately 25.9 million shares of its common stock to former LPS stockholders as the stock component of the total consideration.