DOW JONES NEWSWIRES
Data provider CoreLogic Inc. (CLGX) agreed to acquire the 60%
stake in Australian-based RP Data Ltd. (RPX.AU) it doesn't already
own for an estimated A$194 million ($190.5 million), as it looks to
further expand into the Asia-Pacific region.
CoreLogic currently holds a 40% equity interest in RP Data,
which provides residential and commercial property information in
Australia and New Zealand. It acquired the stake at an average
purchase price of A$1.08 a share over the past four-and-a-half
years.
On Tuesday, it offered to pay A$1.65 per share for the remaining
stake. RP Data's board has recommended shareholders approve the
acquisition. RP Data said it intends to pay a special dividend of
A$0.05 per share at the transaction's close.
The deal comes after CoreLogic last month agreed to sell its
employer-services and litigation-support businesses to
private-equity firm Symphony Technology Group LLC for $265 million.
At that time, the company said it intended to use the proceeds from
that sale for acquisitions.
The addition of RP Data will greatly expand CoreLogic's
international footprint, as RP Data serves more than 10,000 clients
including a significant market penetration with real estate agents,
appraisers and financial institutions.
CoreLogic said it plans to fund the deal, which consists of
A$149 million for the equity stake and the assumption of A$45
million of bank debt, with current cash and proceeds from the
company's existing credit facility. CoreLogic expects the deal will
modestly add to earnings this year.
CoreLogic, which was spun off from title insurer First American
Financial Corp. (FAF) last year, retained its remaining
information-services businesses that had been part of First
Advantage Corp. In November, the company reported it swung to a
third-quarter loss on $174 million in write-downs related to its
employer- and litigation-services businesses. Revenue rose 3.1%,
aided by growth in flood-data services and mortgage-credit
reporting volume.
CoreLogic's shares were down 0.7% at $19.09 in after-hours
trading.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com