CoreLogic to be acquired by PE firms for $6bn

April 2021 | DEALFRONT | PRIVATE EQUITY & VENTURE CAPITAL

Financier Worldwide Magazine

April 2021 Issue

In a $6bn transaction described as the “next chapter of its transformational growth”, real estate data provider CoreLogic has been acquired by funds managed by private equity firms Stone Point Capital and Insight Partners.

Under the terms of the definitive merger agreement, which has been unanimously approved by CoreLogic’s board of directors, Stone Point and Insight Partners will acquire all outstanding shares of CoreLogic for $80 per share in cash.

The transaction will be financed through a combination of committed equity financing provided by funds managed by Stone Point Capital and Insight Partners, as well as committed debt financing provided by J.P. Morgan Securities LLC.

“This is a significant milestone for CoreLogic and a very positive outcome for our shareholders who will receive exceptional value for their shares in cash with a high degree of regulatory certainty and a closing expected in the near term,” said Paul Folino, chairman of CoreLogic. “The transaction is the culmination of our board’s extensive review of strategic alternatives, which included engaging with numerous potential buyers.”

A provider of property insights and solutions, CoreLogic promotes a healthy housing market and thriving communities. Through its enhanced property data solutions, services and technologies, the company enables real estate professionals, financial institutions, insurance carriers, government agencies and other housing market participants to help millions of people find, buy and protect their homes.

“CoreLogic is a mission critical vendor and data provider across industry sectors in which Stone Point has specialised over the past 20 years, including mortgage, residential real estate and P&C insurance,” said Chuck Davis, chief executive of Stone Point Capital. “CoreLogic’s proprietary data assets are increasingly important to its customers, and we look forward to leveraging our network within the broader financial services industry to support the company’s next phase of growth.”

Fellow acquirer Insight Partners is equally focused on companies that define and transform their markets through world-class software and data. “What we found in CoreLogic is a market leader with a long history of serving customers with powerful data technology and a future vision to innovate across the real estate ecosystem,” said Deven Parekh, managing director at Insight Partners. “We are excited to support CoreLogic in its next chapter of transformational growth.”

Serving as financial adviser to CoreLogic is Evercore, with Skadden, Arps, Slate, Meagher & Flom LLP serving as legal adviser. J.P. Morgan Securities LLC and Wells Fargo Securities, LLC are acting as financial adviser to Stone Point Capital and Insight Partners. Kirkland & Ellis is serving as legal adviser to Stone Point Capital. Willkie Farr and Gallagher is serving as legal adviser to Insight Partners.

The transaction is expected to close in the second quarter of 2021 subject to shareholder approval, regulatory approvals and other customary closing conditions.

“Stone Point and Insight Partners are highly respected investors who recognise the value and potential of CoreLogic’s digital content, solutions and market-leading platforms that power the housing economy,” concluded Frank Martell, president and chief executive of CoreLogic. “We look forward to working closely with Stone Point and Insight Partners to build on our record financial and operating performance and accelerate our digital transformation and growth.”

Fraser Tennant