Fidelity National in $1.2bn Stewart Information acquisition

Fidelity National Financial has agreed to acquire title insurance company Stewart Information Services Corporation for an equity value of approximately $1.2 billion.

US-based Stewart offers residential and commercial title insurance, closing and settlement services, appraisal and valuation services and other offerings to the real estate industry.

The consideration will be paid 50 percent in cash and 50 percent in Fidelity common stock. Stewart stockholders will also have the option to elect to receive their consideration in all cash or all stock.

Fidelity said that it intends to achieve at least $135 million in operational cost synergies and expects the acquisition to be at least 15 percent accretive to pro forma 2017 adjusted net earnings per share at that operational cost synergy target.

The transaction is expected to close in the first or second quarter of 2019.

"The venerable Stewart brand has a long and respected history in the title insurance industry and we see tremendous potential in working with the Stewart management team to invest in and grow the Stewart brand on a national basis as part of our long-time, successful strategy of operating multiple title insurance brands under the FNF umbrella," said Fidelity National Financial chairman William Foley II.

Fidelity CEO Raymond Quirk added: "We are very familiar with Stewart in the marketplace and see multiple areas where we can assist and accelerate Stewart's growth plans. We also believe there are significant operational efficiencies we can bring to bear by leveraging FNF's shared services infrastructure that will provide meaningful long-term value creation opportunities for our shareholders."

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