Fidelity National Financial, Inc. Announces New Acquisition
|December 1, 2008|
Fidelity National Financial, Inc. announced the signing of a stock purchase agreement with LandAmerica Financial Group, Inc. (”LFG”) pursuant to which FNF will acquire LFG’s two principal title insurance underwriters, Commonwealth Land Title Insurance Company (”Commonwealth”) and Lawyers Title Insurance Corporation (”Lawyers”), as well as United Capital Title Insurance Company (”United”).
Under the terms of the stock purchase agreement, Chicago Title Insurance Company will acquire Commonwealth for $158.6 million and Fidelity National Title Insurance Company will acquire Lawyers and United for $139.4 million, for a total purchase price of $298.0 million. The transaction anticipates that LFG will file Chapter 11 proceedings and is subject to certain closing conditions and regulatory approvals, including the entry of final approved orders by the Chapter 11 court, Hart Scott Rodino approval and the receipt of Form A approvals from applicable state insurance regulators. Closing is expected to take place as early as late December 2008.
“The acquisition of these established title insurance franchises is an exciting opportunity for FNF,” said Chairman William P. Foley, II. “We have always had great respect for the Commonwealth, Lawyers and United commercial and residential operations and all three underwriters will emerge from the LFG bankruptcy proceedings as much stronger, stable and more valuable companies. To the extent that it is legally permissible, we expect to immediately begin meeting with the Commonwealth, Lawyers and United managers, employees, agents and customers throughout the country to ensure a smooth transition after closing, as we welcome these underwriters and their employees, agents and customers into the FNF title insurance family.”
Source: Fidelity National Financial, Inc.