CoreLogic Expects to Cut $200M in Overhead With Dell PackageFriday, July 20, 2012
CoreLogic Inc. has announced a wide-ranging technology deal with Round Rock, Texas-based Dell Inc. that’s expected to save the Santa Ana-based data analytics company close to $200 million over the life of the seven-year contract.
CoreLogic, which specializes in data for the real estate and mortgage industries, said Dell will provide it a new, upgraded technology platform, along with security, cloud computing and infrastructure management services.
Following an initial transition period of about thirty months, CoreLogic said it expects to cut overhead by about $35 to $40 million per year compared with 2012 costs.
CoreLogic counts a market value of about $2.2 billion. The company’s shares have been on the rise in 2012 as it has embarked on a cost-cutting program and exited some non-core business lines.
The company’s expected to move its headquarters to the Irvine Spectrum later this year.
The deal with Dell appears to resolve one issue tied to the move—CoreLogic’s use of a nearly 53,000 square foot data center at its current headquarters, located on the campus of sister company First American Financial Corp.
CoreLogic split from title insurance company First American in 2010.
The Santa Ana data center is said to be one of the most technologically advanced buildings in Southern California; as of a few years ago it housed close to 500 terabytes of real estate and other data.
CoreLogic said it expects to incur charges totaling nearly $40 million during the transition period to Dell’s technology platform, in conjunction with exiting its existing data center infrastructure.
Dell recently struck a deal to acquire Aliso Viejo-based Quest Software Inc. for $2.4 billion.