Cannae Holdings and Senator Investment Group have submitted a joint offer to acquire real estate data analytics company CoreLogic for a total enterprise value of USD 7.00 billion.
Under the terms of the deal, the two investors are bidding USD 65.00 per share in cash, representing a premium of 22.8 per cent to the target’s last close of USD 52.93 on 25th June 2020.
CoreLogic’s stock price rose 28.4 per cent to USD 67.95 on 26th June 2020, following the announcement.
Senator and Cannae currently jointly own around 15.0 per cent interest of the business.
They are offering a compelling return to shareholders in cash at a time of economic uncertainty as the proposal represents a premium of 37.0 per cent in excess of the company’s unaffected closing price.
Cannae and Senator said they have spent the last nine months performing extensive due diligence and, despite the strong market position as a provider of data and analytics for the real estate and mortgage industries, CoreLogic will not achieve its full potential under the current strategic plan.
Under Bill Foley’s leadership, the investors will look to reignite growth at the company, increase operating efficiency and improve overall allocation of scarce capital resources.
Cannae expects to finance the transaction and its related fees and expenses with a combination of equity investment that has already been spoken for in the amount of USD 3.60 billion and third-party debt financing.
The groups are expecting to sign a definitive merger agreement and announce the transaction within one month after the company provides access to relevant diligence materials.
CoreLogic has over 4.50 million records on its database and is trusted by 1.20 million real estate professionals, 9,000 mortgage lenders and 300 capital markets, among others.
In the three months ended 31st March 2020, the group posted operating revenues of USD 443.89 million, compared to USD 417.71 million in the corresponding period of 2019.
Net income rose significantly to USD 33.82 million in Q1 2020 (Q1 2019: USD 1.69 million).
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