Acquisition of a leading global provider of property insurance claims workflow solutions expands Insurance and International Footprint
CoreLogic (NYSE: CLGX), a leading global provider of property information, insight, analytics and data-enabled solutions, today announced the Company has entered into a definitive agreement to acquire the outstanding shares of Symbililty Solutions Inc. (“Symbility”) (TSX.V: SY) not already owned by CoreLogic. CoreLogic currently holds approximately a 28% ownership interest in Symbility.
Symbility, founded in 2004, is a leading provider of subscription and cloud-based property insurance claims workflow solutions for the Property & Casualty insurance industry. Symbility also provides an extensive array of innovative enterprise mobile and application software solutions. The company is headquartered in Toronto, Canada and operates in the US, Canada, the United Kingdom, Germany, Netherlands, Australia and New Zealand.
“Symbility expands our footprint in property and casualty insurance domestically and in key markets around the globe. Further scaling our insurance and international footprint offers the potential for significant non-cyclical growth in line with our long-term goal of sourcing at least 50% of our revenues from non-U.S. mortgage. In addition to the obvious financial benefits and synergies; the combination of CoreLogic and Symbility should yield significant future growth opportunities through the introduction of new products, services and workflow tools which draw from a wide range of unmatched gold-standard data assets, platforms and analytical capabilities,” said Frank Martell, President and Chief Executive Officer of CoreLogic.
“Symbility has a great leadership team, innovative and leading-edge solutions, and we believe the combination of CoreLogic and Symbility is compelling for all stakeholders,” Martell added. “The combination of Symbility and our existing underwriting and geo-spatial data and analytics capabilities as well as our property-related data assets will allow CoreLogic to provide our clients in the insurance industry with new and unique insights into underwriting property and natural hazard risk coverage while accurately and efficiently processing claims.”
The transaction is expected to close by the end of 2018 and is subject to Symbility shareholder and option-holder approval, court approval, certain third-party consents and customary closing conditions. Under the terms of the definitive agreement, CoreLogic will acquire all outstanding common shares of Symbility not owned by CoreLogic or its affiliates for C$0.615 per share in cash. In addition, all holders of outstanding stock options of Symbility will be entitled to receive the “in-the-money” value of such stock options, less applicable withholdings. The Company intends to fund the acquisition of Symbility using cash on hand and available amounts under its revolving credit facility.
The acquisition is expected to be accretive to 2019 financial results excluding one-time integration costs as well as reductions in acquired deferred revenue and other purchase accounting adjustments. BMO Capital Markets is acting as financial advisor to CoreLogic on the transaction.