Shares of CoreLogic Inc. (NYSE: CLGX) jumped 25% to $66.33 and a $5.2 billion market cap today after an unsolicited Bill Foley-led bid to buy the Irvine-based company.
Cannae Holdings Inc. and Senator Investment Group LP, which hold a combined 15% of the shares, made a $7 billion takeover offer to buy each share for $65 in cash. The offer places CoreLogic’s equity value at $5.2 billion and its debt around $1.8 billion.
“Despite its strong market position as a provider of data and analytics for the real estate and mortgage industries, we believe the company will not achieve its full potential under its current strategic plan,” Cannae Chief Executive Officer Richard N. Massey and Quentin Koffey, a partner at Senator Investment, said in a letter to CoreLogic’s board.
Foley, who is well known in Orange County business circles, is chairman of Cannae, a holding company that houses his investments in title insurance provider Fidelity National Financial Inc.
CoreLogic yesterday increased its second-quarter forecast to revenue of $455 million to $465 million, up from a prior prediction of $420 million to $445 million. It also boosted adjusted profit to $145 million to $150 million from a prior prediction of $120 million to $135 million.
“CoreLogic continues to focus on successfully executing on its business plan to drive shareholder value, as evidenced by yesterday’s announcement of significantly increased revenue and EBITDA guidance for the second quarter of 2020,” CoreLogic said today in a statement in response to the offer. “Prior to issuing this revised guidance, the company had no knowledge of any acquisition proposal.”
See the Business Journal’s July 6 print edition for an interview with CoreLogic CEO Frank Martell.