Fidelity National Financial (FNF), a provider of title insurance, mortgage services, specialty insurance, claims management services and information services, has signed an agreement under which it will sell its 32% equity ownership stake in Sedgwick Claims Management Services, to affiliates of Stone Point Capital and Hellman & Friedman.
Stone Point was a 40% owner when the FNF, Thomas Lee Partners, and Evercore Capital Partners acquired Sedgwick, a provider of claims and productivity management solutions to corporate and institutional clients, said the company.
Under the terms of agreement, the total cash purchase price for Sedgwick, including repayment of debt, will be approximately $1.1bn. FNF expects to receive net proceeds of approximately $220m for its 32% equity ownership stake, resulting in a pre-tax gain of approximately $95m.
According to FNF, the transaction is expected to close during the second quarter of 2010, subject to customary closing conditions and the receipt of any necessary regulatory approvals.
William Foley, II, chairman of FNF, said: The sale of Sedgwick clearly achieves our on-going goal of creating significant value for our shareholders and is the culmination of a very successful four-year investment for FNF. We are very proud of the growth that Sedgwick experienced during our mutually beneficial partnership with the company and we wish them future success with their new investment partners.