Santa Ana-based First American Financial Corp. has offered to buy back all or part of neighboring data services and analytics company CoreLogic Inc.
The two companies were created last year out of the split of First American Corp., one of Orange County’s largest-ever spinoffs.
The split was an attempt to separate and better promote CoreLogic’s growing technology-focused business from First American’s dominant title insurance line of business.
First American Financial is CoreLogic’s largest shareholder, with a stake of about 11%, according to regulatory filings.
CoreLogic counts a market value of about $1.2 billion.
First American’s market value is about $1.4 billion.
The two companies share an office campus in Santa Ana, although CoreLogic said it plans to move to the Irvine Spectrum next year.
CoreLogic’s stock is down about 40% since the split. It said in late August it was forming an independent committee to explore strategic options, including a possible merger or a sale.
The timing of that announcement, coming amid a difficult real estate market and a rocky stock market, isn’t the best, according to a First American Financial filing made with the Securities and Exchange Commission last week.
A deal “could result in a sale of the entire company at a price that would not be beneficial to (First American’s) long-term shareholders,” the company said in the regulatory filing.
First American Financial has recommended that CoreLogic consider other options, such as selling some non-core businesses, which it would buy.
First American Financial also said it has offered to acquire CoreLogic if its pursues an outright sale.
Terms of any potential deals were not disclosed.
