Insurance and reinsurance focused private equity firm Stone Point Capital LLC and New York venture and private equity firm Insight Partners have completed their roughly $5.9 billion acquisition of CoreLogic, the property risk modelling, data and analytics company.
The acquisition deal was announced back in April, providing CoreLogic with a route to escape the unsolicited bids and activist investor attention it had been receiving, by securing two new investor partners to takeover the firm.
As of today, funds managed by Stone Point Capital and Insight Partners have acquired CoreLogic for $80 per share in cash and as a result its shares have ceased trading on the New York Stock Exchange, with the modelling and data firm taken private.
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.
The new investors will no doubt have aggressive targets for the company and hope to take more market share from the other main catastrophe risk modellers.
After this acquisition, CoreLogic will still be headquartered in Irvine, California, and its management team led by President and CEO Frank Martell stays in place and will continue to operate CoreLogic as a private company.
Frank Martell commented, “Today marks a major milestone in CoreLogic’s history as we move to capture the many opportunities in front of us to accelerate our growth and transformation as a privately held firm. The entire team is excited and looking forward to working closely with Stone Point and Insight Partners to build on our record financial and operating performance and deliver solutions that help millions of people find, buy, and protect their homes each year.”
Chuck Davis, CEO of Stone Point Capital, added, “Stone Point is thrilled to work with the CoreLogic leadership team to support the Company’s next phase of growth. CoreLogic is a mission-critical vendor and data provider across industry sectors in which Stone Point has specialized over the past 20 years, including mortgage, residential real estate and P&C insurance. We believe our financial services domain expertise and our partnership with the management team can accelerate CoreLogic’s momentum as it delivers new innovative solutions to its customers.”
Deven Parekh, Managing Director at Insight Partners, also said, “We are excited to partner with the talented team at CoreLogic as the company continues to innovate across the real estate ecosystem. Insight Partners has a strong track record of partnering with market-transforming companies like CoreLogic, and we look forward to active involvement in this next chapter in its evolution.”