During the last week of April, the firm's shareholders voted to approve the purchase, putting an end to all the troubles that had occurred in the previous year. After a months-long conflict with Senator Investment Group and Cannae Holdings, which tried to evict CoreLogic's board after it refused a $65 per share bid in July 2020, the company approved the proposal from Stone Point and Insight in Feb. Upon accepting the much higher offer of $80 per share, the board seems to be justified for Corelogic. Still, the agreement was thrown into turmoil when CoStar Group presented an unsolicited takeover plan that appeared as possibly pricing the business much higher.
Instead of a cash buy-out, this unexpected deal offered CoreLogic's shareholders 0.1019 shares of CoStar common stock on every stake they possessed, with the deal anticipated to be worth nearly $90 per piece at the time it was first presented. Nevertheless, CoStar stock experienced significant uncertainty in the weeks following the proposition. After many revisions to the CoStar bid, it concludes that CoreLogic stakeholders have chosen the safer Stone Point and Insight alternative.
Paul Folino, chairman of the California-based company, stated that it is a big achievement for CoreLogic, as well as a win for their investors. He confirmed that the closure of the deal would happen during CoreLogic's second quarter. Stone Point Capital's CEO, Mr. Chuck Davis, is very excited to collaborate with Corelogic's management team to help the business's next stage of development. He expressed that CoreLogic's data and software solutions that benefit the property and insurance sectors are currently experiencing a digital transformation.
Noting this, Davis said that Stone Point's financial services market knowledge and alliance can help CoreLogic boost its progress. Moreover, Insights Partner's M.D., Deven Parekh, added that CoreLogic is a dominant player with a long record of serving consumers with effective data technology and has a futuristic roadmap to expand across the real estate environment. He and his team are thrilled to aid CoreLogic with its next phase of transactional progress.
The contract's termination is still subject to regulatory authorization and normal closing conditions, according to CoreLogic. Evercore Partners has the role of the financial advisor of the company. Skadden, Arps, Slate, Meagher and Flom LLP are appointed as the company's legal advisors.
A brief overview of the three companies:
Traded with the ticker symbol of CLGX under the New York Stock Exchange, CoreLogic has a market cap of $5.853 billion. Apart from housing information, the company also supplies financial and consumer information and business intelligence. CoreLogic identifies and manages growth opportunities, improves market efficiency, and manages risk using data intelligence. It has completed more than 4.5 billion records spanning over 50 years and above 145 million parcels with tax payment history.
Stone Point Capital:
Stone Point Capital is a pioneering private equity company that invests in financial services companies around the world. It has raised over $26 billion in total capital commitments to spend in 130+ companies in 12 active market segments and 70+ sub-sectors. Its headquarters is in Greenwich, United States and is owned by the global investment company, The Carlyle Group.
Founded by Jeff Horing and Jerry Murdock, Insight Partners is a New York-based venture capital and private equity company. The enterprise makes investments in evolution stage technology, applications, and Internet companies. Insight has a total capital investment of above $30 billion, has engaged in more than 400 firms, and has conducted more than 200 M&A transactions for its portfolio businesses. In August 2020, the firm recorded total revenue of $96 million.