First American Financial (FAF), a global provider of title insurance, settlement services and risk technologies, has reached an agreement to purchase Interthinx from Verisk Analytics, in a transaction valued at nearly $155m.
Interthinx, which was established in 1996, offers loan quality analytics, decision support tools and loan review services for the mortgage industry to reduce risk, boost operational efficiency, comply with regulatory requirements, manage data verification and ensure compliance.
Commenting on the acquisition, First American Financial CEO Dennis Gilmore said that the sweeping market and regulatory changes of the past several years have led to more demanding mortgage origination requirements."
"Our customers have expressed to us a desire for tighter integration between loan origination activities, loan quality verification processes, and title and settlement services.
"The added capabilities of Interthinx will allow us to leverage our central role in real estate transactions to offer our customers further assurances in areas that present risk, including fraud; identity and income validation; collateral adequacy; and compliance," Gilmore added.
Subject to customary closing conditions, including certain regulatory reviews, the acquisition is likely to conclude by 31 March 2014.
BofA Merrill Lynch has been selected to work as financial advisor, and McGuireWoods as legal advisor, to First American Financial Corporation in pertaining to the transaction.
First American Financial (FAF) had revenues of nearly $4.5bn in 2012. The company provides its products and services directly and through its agents across the US and globally.
Image: Entrance to First American Corporation headquarters complex in Santa Ana. Photo courtesy of Coolcaesar.