Fidelity National Financial, Inc. Announces Acquistion of LoanCare Servicing Center, Inc.
Jacksonville, Fla. -- (May 14, 2009) -- Fidelity National Financial, Inc. (NYSE:FNF), a leading provider of title insurance, specialty insurance, claims management services and information services, today announced the signing of a definitive agreement under which it will acquire LoanCare Servicing Center, Inc. ("LoanCare"), a leading provider of national loan subservicing services.
LoanCare, founded in 1983, provides subservicing services on more than 100,000 loans for ninety companies in all fifty states, making it approximately the seventh largest subservicer in the nation. LoanCare, which generated 2008 revenue of approximately $19 million and adjusted pre-tax earnings of approximately $4.4 million, provides traditional subservicing, outsourced loss mitigation and other servicing related products and services. The company has previously been a wholly-owned subsidiary of LandAmerica Financial Group, Inc ("LandAmerica"). The total purchase price was approximately $16.3 million and LoanCare had tangible equity of approximately $12.4 million at February 28, 2009. The closing of the acquisition is subject to the satisfaction of certain closing conditions, including approval of the court overseeing the LandAmerica Chapter 11 bankruptcy proceeding.
"We are excited to add the LoanCare capabilities to the FNF family of companies," said Chairman William P. Foley, II. "We believe that LoanCare and ServiceLink, our national lender platform, can generate substantial ancillary product revenue opportunities through the subservicing and loss mitigation platforms, including additional title and closing revenue, trustee sale guarantees, valuations and a broad range of significant default based revenues."
Fidelity National Financial, Inc. (NYSE:FNF), is a leading provider of title insurance, specialty insurance, claims management services and information services. FNF is the nation's largest title insurance company through its title insurance underwriters - Fidelity National Title, Chicago Title, Commonwealth Land Title, Lawyers Title, Ticor Title, Security Union Title and Alamo Title - that collectively issue more title insurance policies than any other title company in the United States. FNF also provides flood insurance, personal lines insurance and home warranty insurance through its specialty insurance business. FNF also is a leading provider of outsourced claims management services to large corporate and public sector entities through its minority-owned subsidiary, Sedgwick CMS. FNF is also a leading information services company in the human resource, retail and transportation markets through another minority-owned subsidiary, Ceridian Corporation. More information about FNF can be found at www.fnf.com.
This press release contains forward-looking statements that involve a number of risks and uncertainties. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to future economic performance and are not statements of fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to: changes in general economic, business and political conditions, including changes in the financial markets; adverse changes in the level of real estate activity, which may be caused by, among other things, high or increasing interest rates, a limited supply of mortgage funding or a weak U. S. economy; our potential inability to find suitable acquisition candidates, acquisitions in lines of business that will not necessarily be limited to our traditional areas of focus, or difficulties in integrating acquisitions; our dependence on operating subsidiaries as a source of cash flow; significant competition that our operating subsidiaries face; compliance with extensive government regulation of our operating subsidiaries; and other risks detailed in the "Statement Regarding Forward-Looking Information," "Risk Factors" and other sections of the Company's Form 10-K and other filings with the Securities and Exchange Commission.
SOURCE: Fidelity National Financial, Inc.
CONTACT:
Daniel Kennedy Murphy, Senior Vice President and Treasurer
904-854-8120
dkmurphy@fnf.com