This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Fidelity National Reacquires LPS for $2.9 Billion

NEW YORK ( TheStreet) -- Title insurance company Fidelity National Financial (FNF - Get Report) said it will acquire mortgage technology provider Lender Processing Services (LPS), which it owned previously, for $2.9 billion in a cash-and-stock deal.

FNF will acquire all outstanding common stock of LPS for $33.25 per share and will pay 50% of the consideration in cash and 50% in stock. The purchase price represents a 19% premium to the 30-day closing average prior to May 22, when rumors of the potential deal hit the market causing both shares to surge.

On Tuesday, shares of LPS were trading higher by 0.8% at $33.25 per share in premarket trading, while Fidelity National was up 0.4% at $26.30.

FNF will combine its ServiceLink unit with LPS in a new consolidated holding company and sell a 19% stake to private equity firm Thomas H Lee Partners for $381 million in cash.

Under the terms of the deal, LPS has until July 7, 2013 to shop for other offers.

FNF chairman William P Foley, II said the acquisition will help create a "larger, broader, more diversified and recurring revenue base" for the company. The deal is expected to save $100 million in costs at least and Fidelity expects it to add 11.3% to 2012 earnings.

Fidelity National Financial spun off its financial services processing unit Fidelity National Information Services (FIS) in 2006. In 2008, the latter spun off LPS.

-- Written by Shanthi Bharatwaj in New York.

>Contact by Email.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
LPS $0.00 0.00%
FNF $36.65 0.16%
AAPL $125.05 -1.00%
FB $83.39 0.23%
GOOG $553.81 0.32%


DOW 17,890.50 -85.81 -0.48%
S&P 500 2,079.18 -7.06 -0.34%
NASDAQ 4,928.8250 -18.6160 -0.38%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs