Jacksonville, Fla. -- (April 20, 2010) -- Fidelity National Financial, Inc. (NYSE:FNF), a leading provider of title insurance, mortgage services, specialty insurance, claims management services and information services, today announced the signing of a definitive agreement under which it will sell its 32% equity ownership stake in Sedgwick Claims Management Services, Inc. ("Sedgwick") to affiliates of Stone Point Capital LLC ("Stone Point") and Hellman & Friedman LLC. Stone Point was a 40% owner when FNF, Thomas H. Lee Partners, L.P. and Evercore Capital Partners acquired Sedgwick in January 2006. Sedgwick is a leading provider of claims and productivity management solutions to corporate and institutional clients.
Under the terms of the definitive agreement, the total cash purchase price for Sedgwick, including repayment of debt, will be approximately $1.1 billion. FNF expects to receive net proceeds of approximately $220 million for its 32% equity ownership stake, resulting in a pre-tax gain of approximately $95 million.
The transaction is expected to close during the second quarter of 2010, subject to customary closing conditions and the receipt of any necessary regulatory approvals.
"The sale of Sedgwick clearly achieves our on-going goal of creating significant value for our shareholders and is the culmination of a very successful four-year investment for FNF," said Chairman William P. Foley, II. "We are very proud of the growth that Sedgwick experienced during our mutually beneficial partnership with the company and we wish them future success with their new investment partners."
Fidelity National Financial, Inc. (NYSE:FNF), is a leading provider of title insurance, mortgage services, 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.
Daniel Kennedy Murphy
Senior Vice President and Treasurer