NEW YORK (TheStreet) -- Shares of Corelogic Inc. (CLGX) declined 2.09% to $30.45 today as the Federal Trade Commission placed conditions on the company's proposed $661 million purchase of DataQuick Information Systems after assessing that the deal would limit competition in the market for certain bulk real estate data.
CoreLogic agreed to settle FTC charges that the proposed acquisition would likely substantially lessen competition in the market for national assessor and recorder bulk data.
According to the FTC's complaint, the proposed combination of CoreLogic's and DataQuick's national assessor and recorder bulk data businesses would eliminate one of only three providers of national assessor and recorder bulk data.
To preserve competition that would be lost due to the acquisition, the FTC's proposed settlement order requires CoreLogic to license to Renwood RealtyTrac national assessor and recorder bulk data as well as several ancillary data sets that DataQuick provides to its customers.
TheStreet Ratings team rates CORELOGIC INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CORELOGIC INC (CLGX) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and weak operating cash flow."