CoreLogic, the property risk modelling, data and analytics company, has announced that it is being acquired by reinsurance focused private equity firm Stone Point Capital LLC and New York venture and private equity firm Insight Partners for roughly $5.89bn.
CoreLogic has been the subject of a number of unsolicited bids over the last year or so, as well as activist investor pressure.
These culminated in a bid of $80 per share, valuing the company at roughly $5.89 billion, as private equity specialists Stone Point and Insight Partners stepped up with a much higher offer than previous bids that had been as low as $65 per share.
CoreLogic accepted that bid and has now announced that its shareholders voted to approve the takeover by funds under the management of the two private equity investment firms.
“This is a significant milestone for CoreLogic and a very positive outcome for our shareholders. With their overwhelming support, we expect to be able to close the transaction during the second quarter,” CoreLogic Chairman Paul Folino explained.
“Stone Point is excited to work with the CoreLogic leadership team to support the company’s next phase of growth. CoreLogic’s data and software platforms help power the housing and insurance industries, both of which are undergoing a digital transformation. We believe our financial services domain expertise and partnership can accelerate CoreLogic’s momentum as it delivers new innovative solutions to its customers,”added Chuck Davis, CEO of Stone Point Capital.
“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. We are excited that we are one step closer to supporting CoreLogic in its next chapter of transformational growth,” Deven Parekh, Managing Director at Insight Partners also said.
CoreLogic is well-positioned to play a leading role as a risk modeller in the reinsurance and insurance-linked securities (ILS) space and its EQECAT models have been used in some catastrophe bond issues over the years.
In addition the company has a wide-range of property data services, which can provide more granular risk related insights to insurance, reinsurance and ILS market participants.
With the backing of investors like Stone Point and Insight Partners, CoreLogic will be hoping it can accelerate traction in the re/insurance space and win more modelling business, alongside its provision of other services.
Interestingly though, CoreLogic accepted the $80 per share bid on February 4th when its share price stood at almost $82.
Since then, the share price quickly rose to $90 per share around mid-February, but has fallen away since and now stands just below the acquisition price, at $99.67 per share.