Stone Point Capital and Insight Partners completed the acquisition of CoreLogic for $ 5.9 billion on Friday. The company received offers from several other firms, including CoStar Group.
After a nearly yearlong acquisition battle, CoreLogic is finally in the hands of Stone Point Capital and Insight Partners, according to an announcement on Friday. The company was acquired for $ 5.9 billion ($ 80 x 74 million shares) and was delisted from Nasdaq and the New York Stock Exchange (CLGX).
“Today marks an important milestone in CoreLogic history as we move forward to capture the many opportunities before us to accelerate our growth and transformation as a private company,” said CoreLogic President and CEO Frank. Martell, in a statement. “The entire team is excited and eager to work closely with Stone Point and Insight Partners to leverage our record financial and operating performance and deliver solutions that help millions of people find, buy and protect their homes each year.”
The battle for CoreLogic began in July 2020, when Senator Investment Group LP and Cannae Holdings Inc. offered to buy the real estate data firm for $ 4.81 billion ($ 65 x 74 million shares). The firms said their offering reflected the fact that they already owned 15 percent of the company’s outstanding common shares, according to a previous Inman article.
“The CoreLogic Board of Directors unanimously concluded that the unsolicited proposal significantly underestimates the company, raises serious regulatory concerns and is not in the best interest of its shareholders,” the company told Inman in July.
After Senator Investment Group and Cannae Holdings stepped aside, CoStar Group and Warburg Pincus they threw their hats in the ring. Warburg Pincus never publicly disclosed his offer; however, CoStar Group offered the highest price per share ($ 95.76) for a total of $ 7 billion. Just when CoStar thought they had sealed the deal, CoreLogic accepted Stone Point Capital and Insight Partners’ offer for $ 6 billion.
“Given our substantial commitment since early December, we were surprised to read about the acquisition of CoreLogic by Stone Point Capital and Insight Partners on February 4, 2021.” Andy Florance, CEO of CoStar Group, said in February. “Their cash offer of $ 80 per share was materially less than our last stock offering, which had an overall value of $ 86.30 per share.”
“The decision to accept the lowest bid of $ 80 per share from a sponsor indicates instead a failure to properly assess the synergies of our proposal as a strategic bidder,” he added.
In March, the CoStar Group made another attempt to acquire CoreLogic, this time for $ 7.45 billion. However, CoreLogic said the offer was not enough to push Stone Point and Insight Partners aside.
“The CoreLogic Board unanimously believes that its updated proposal requires further improvement with respect to the following key areas: (i) value, (ii) certainty of value and (iii) certainty of closing in a timely manner,” said Martell. “We continue to believe that there is strategic potential in the combination of our two businesses and we ask that you reconsider your positions on these important terms.”
After reviewing the demands of CoreLogic’s proposal, CoStar Group withdrew its offer while citing volatility in the residential mortgage market. “With interest rates rising, now is not the time for us to vigorously buy into the residential mortgage market,” Florance explained. “We wish to congratulate Stone Point and Insight Partners on their successful bid to acquire CoreLogic.”
Now that the acquisition is complete, Stone Point Capital CEO Chuck Davis said his firm and Insight Partners are focused on enhancing CoreLogic’s value proposition.
“Stone Point is delighted to be working with the CoreLogic leadership team to support the next phase of growth for the company,” Davis said in a prepared statement. “CoreLogic is a mission-critical provider and data provider in every industry sector that Stone Point has specialized in for the past 20 years, including mortgage, residential real estate and general insurance.”
“We believe that our expertise in the financial services domain and our partnership with the management team can accelerate CoreLogic’s momentum as it delivers innovative new solutions to its clients,” he added.
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