Fidelity National Financial Inc. has increased the cash component of
The total purchase price remains $2.9 billion, but the stock component is being reduced. The deal is now two-thirds cash, one-third stock.
According to an 8-K filing by FNF obtained through DisclosureNet.com, it notified LPS that it was upping the cash payment from $16.625 per share of LPS common stock to $22.303 per share. Based on the increased cash component, for every LPS share, holders will get approximately 0.43 shares of FNF based on FNF being valued at $25.489 per share.
The terms of the deal call for total consideration of $33.25 per LPS common share.
FNF is responsible for $300 million of the increase, with the remaining $200 million coming from Thomas H. Lee Partners LP.
The transaction called for FNF’s ServiceLink unit to be combined with LPS in a new holding company. Now, FNF will be selling THL a 29% stake in that new company for $581 million in cash.
“The increase in the cash component of the total consideration for LPS brings more stability and less potential volatility to the total consideration that LPS stockholders will receive," said FNF chairman William P. Foley II in a press release. "It reduces their exposure to movements in FNF's common stock price over the next several months until the closing of the acquisition, which is expected to occur in the fourth quarter of 2013.”
