Fidelity National Financial is exercising its option to purchase TitlePoint from Black Knight for $225 million in cash, both companies announced.
Black Knight was created in January 2014 following FNF's
The deal stems from those 2014 agreements, where Black Knight granted FNF a right to repurchase the entity that previously held the TitlePoint business in the event of a change in control. That option was triggered when Black Knight agreed to be acquired by Intercontinental Exchange.
However, TitlePoint's sale is not conditioned on the completion of the ICE-Black Knight deal, which is
"We believe that Black Knight's and ICE's willingness to sell TitlePoint, despite the fact that a change in control has not technically occurred yet, is indicative of both companies' confidence that their merger will close," wrote Ryan Tomasello, an analyst at Keefe, Bruyette & Woods, in a note on the transaction.
TitlePoint is part of Black Knight's Data & Analytics segment, and is used for searches for detailed property information, images of documents and maps from hundreds of counties across the U.S.
"This transaction enables us to focus our investments in our mortgage-specific software and our core data and analytics capabilities, while also reducing our revenues that are sensitive to origination volumes," said Joe Nackashi, Black Knight's CEO, in a press release.
The deal is subject to customary closing conditions and is expected to close in December 2022.
"The acquisition of TitlePoint is just one more way FNF is investing in, expanding, and integrating property data, images, and search technology into FNF's existing assets," said Mike Nolan, CEO of Fidelity National Financial, in its own press release. "Combined with other FNF digital technologies, this acquisition improves productivity and automation and streamlines the manufacturing of title plant information across our industry leading footprint."
