Property information provider CoreLogicÂ® (NYSE: CLGX) has entered into a definitive agreement to acquire real estate collateral information provider FNC, Inc.
The transaction is expected to close during the first quarter of 2016 and is subject to customary closing conditions including regulatory clearance. The purchase price of USD 475 million represents approximately 13.5 times pro forma projected 2016 adjusted EBITDA.
The transaction is expected to be accretive to 2016 financial results excluding one-time reductions from transaction-related fees and transitional accounting items. The transaction will be funded using cash on hand and debt.
Evercore acted as exclusive financial advisor to CoreLogic and provided a fairness opinion for the transaction and O´Melveny & Myers LLP served as legal advisor. FNC was represented by Wells Fargo Securities as exclusive financial advisor and Butler Snow LLP as legal advisor.
Following the close of the transaction, FNC operations will be consolidated within the VSG which is reported within CoreLogic´s Data and Analytics segment.
CoreLogic combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. Headquartered in Irvine, Calif., the company operates in North America, Western Europe and Asia Pacific.
FNCÂ® revolutionized real estate collateral information technology. Since the mid-1990s, FNC has offered solutions that automate appraisal ordering, tracking, documentation and review for lender compliance with government regulations. FNC´s clients have realized reduced costs and more efficient loan processing