LandAmerica to buy Capital Title in $251M deal
|March 31, 2006|
Title insurance firm LandAmerica Financial Group Inc. plans to acquire Capital Title Group Inc. for about $251 million in cash and stock.
Scottsdale-based Capital Title (NASDAQ: CTGI) posted gross revenue of more than $380 million last year. According to LandAmerica (NYSE: LFG - ) the acquisition will add to its mortgage lender services business.
"We have a great deal of respect for LandAmerica's position as a national leader in real estate transaction services," said Donald Head, chairman, president and chief executive of Capital Title Group. "We believe their multiple underwriter culture parallels Capital Title's philosophy. Joining a company with $3.9 billion in revenue and one that shares our commitment to superior service gives us a greater breadth of services to offer our customers."
Founded in 1981, Capital Title operates primarily as a title underwriter and agent in Arizona, California and Nevada. In addition to title and closing services, about 17 percent of Capital Title's business mix includes settlement services to mortgage lenders.
Source: LandAmerica Financial Group Inc.