First American Financial Corp. signed a definitive agreement to acquire Interthinx for $155 million from its parent company, Verisk Analytics.
Agoura Hills, Calif.-based Interthinx provides risk mitigation technology and services to the mortgage industry, including its top mortgage fraud analytics product, FraudGuard.
"The sweeping market and regulatory changes of the past several years have led to more demanding mortgage origination requirements," says Dennis Gilmore, CEO of First American Financial, in a press release. "Our customers have expressed to us a desire for tighter integration between loan origination activities, loan quality verification processes, and title and settlement services.
"The added capabilities of Interthinx will allow us to leverage our central role in real estate transactions to offer our customers further assurances in areas that present risk, including fraud; identity and income validation; collateral adequacy; and compliance," Gilmore continued.
First American, Santa Ana, Calif., is a provider of title insurance, settlement services and risk solutions to participants in real estate transactions. The company has the nation's largest inventory of property and title insurance and settlement services offerings, Gilmore notes in the release.
In addition to Interthinx, Verisk subsidiaries provide risk services to the insurance, healthcare and other industries.
"The transaction will ensure Interthinx has the opportunity to serve its customers and invest as needed in the years ahead, with a focus on the mortgage industry's continued evolution," Verisk CEO Scott Stephenson said in a separate statement.
The transaction is expected to close by the end of March and will be reflected in First American's first quarter 2014 earnings.
B of A Merrill Lynch is servicing as financial advisor and McGuireWoods LLP as legal advisor on behalf of First American for this transaction, while Verisk is respectively using Morgan Stanley and McCarter & English LLP.