The purchase was made with a cash deal of $80 per share, showing a $6.0 billion market valuation. Additionally, the contract also involves a premium of 51 per cent to the unchanged book value of CoreLogic's shares on June 25, 2020.
CoreLogic's shares rose 1% to $81.08, just above the bid price of $80. Evercore was CoreLogic's financial advisor, while Stone Point Capital and Insight Partners were directed on JP Morgan Securities and Wells Fargo's transaction.
Previously, CoreLogic has denied Senator Investment Group LP and Cannae Holdings Inc.'s proposal to purchase the company for $7 billion. Cannae and Senator, who jointly have an economic stake in CoreLogic of around 15 per cent, have offered $65 per share in cash. CoStar also proposed to bid 0.0933 per CoreLogic’s shares. Simultaneously, Warburg Pincus also attended this bidding round.
A brief overview of these three companies
Headquartered in Irvine, California, CoreLogic helps real estate agents, financial companies, insurance carriers, government agencies, and other housing market investors assist thousands of individuals in finding, purchasing, and securing their houses.
Its essential products are Financial, property and consumer information, analytics and business intelligence. Corelogic lists on New York Stock Exchange with a market capitalization of $6.373billion.
Stone Point Capital:
This Greenwich, Connecticut based company, comes among the prominent investment management companies that emphasize financial services provision. With total invested capital of above $25 billion, the company has raised and operated eight private equity funds - the Trident Funds. Stone Point focuses on investments in businesses in the global financial services sectors and associated industries.
Insight partners back growth-stage technology, software and Internet companies. Founded in 1995, Insight Partners has funded over 400 businesses globally and has generated over $30 billion in capital investments through a series of blind pool funds.
According to the CEO of Stone Point Capital, Chuck Davis, CoreLogic is a vital supplier and data provider through industries which have already been specialized by Stone Point for the past 20 years, covering the mortgage, residential real estate, and P&C insurance.
Deven Parekh, Managing Director at Insight Partners, found it exciting to assist CoreLogic in its next transformative development chapter. He believes that CoreLogic has the power to transform the real estate ecosystem through its powerful data technology.
The merger schedules to complete in the second quarter of 2021 after the shareholder and regulatory approvals, and the closure of other customary terms.