CoreLogic to Acquire FNC in $475M Deal

Irvine,CA-based CoreLogic, the real estate data and analytics company, announced this week that it had entered into a definitive agreement to acquire FNC, Inc., an Oxford, MS-based software maker, for $475 million. This is the second big 2015 acquisition for CoreLogic, who purchased LandSafe Appraisal Services, an appraisal management company, from Bank of America for $122 million earlier this year. CoreLogic said in a press release that it wants to integrate FNC's real estate appraisal software into its products.

"FNC is a pioneer in developing unique collateral information and technology platforms for the U.S. lending ecosystem. Its business has been built around recurring, high-margin revenue streams. The acquisition of FNC is an important step in our development of a world-class property valuation solutions capability," said Anand Nallathambi, President and Chief Executive Officer of CoreLogic. "FNC's platforms, together with our existing valuation-related assets and our recent acquisition of LandSafe Appraisal Services, allow us to gain operational scale and expand the value proposition of our VSG. We expect property valuation to be an area of significant future domestic and international growth."

"CoreLogic's VSG will be the conduit through which we will seamlessly deploy our broad suite of property valuation capabilities. The VSG will offer best-in-class content, analytics and workflow platforms which employ our Gen2 technology and mobility capabilities," added CoreLogic Chief Operating and Financial Officer Frank Martell. "Improving the quality and economics of property valuation is a major imperative for the real estate industry. Through the VSG, CoreLogic will be well positioned to bring comprehensive and compelling solutions to the marketplace."

Launched in 1995 by Bill Rayburn and three other University of Mississippi business professors, FNC said set out to find ways to streamline lenders' mortgage-approval processes. CoreLogic said FNC's software is used by 18 of the 20 largest American banks and connects to 80,000 appraisers, property inspectors and title insurers. Evercore acted as exclusive financial advisor to CoreLogic and provided a fairness opinion for the transaction and O'Melveny & Myers LLP served as legal advisor. FNC was represented by Wells Fargo Securities as exclusive financial advisor and Butler Snow LLP as legal advisor.

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