CoreLogic receives unsolicited acquisition proposal from Senator Investment Group and Cannae Holdings for $7 billion, as private equity ASG takes over AI-powered startup Homebot.
Unsolicited Proposal to Acquire CoreLogic
Bill Foley's Cannae Holdings Inc. and Senator Investment Group LP has sent a letter to CoreLogic proposing a takeover for $65 cash per share, Bloomberg reported.
The proposal offers to reignite growth and increase the operating efficiency of the Irvine, California-based real estate data company. The bid to acquire CoreLogic values the company's equity at about $5.2 billion, a 23 percent premium over its June 25, 2020, closing price; the total offers amounts to $7 billion, including debt.
Cannae CEO Richard N. Massey and Quentin Koffey, who is a partner at Senator Investment Group LP stated that under its current strategic plan, CoreLogic will not be able to achieve its full potential. That is despite CoreLogic's strong market position as a real estate and mortgage data and analytics provider.
It was also reported that Cannar and Senator hold about 15 percent of economic interest in CoreLogic. There have been no formal discussions yet about the proposed takeover, but according to CoreLogic, the company will review the proposal with the help of its legal and financial advisors to determine what its next course of action will be.
In its statement, CoreLogic said that it continues to focus on achieving a successful execution of its business plan, as shown in the announcement of the company's significantly increased revenue and EBITDA Q2 guidance. CoreLogic said that it did not know about the acquisition proposal before the issuing of the revised guidance.
Meanwhile, Cannae and Senator said they are prepared to take all necessary steps, including calling for a special meeting and launching a proxy fight in case the company fails to engage. If given adequate diligence, Canne and Senator said they could sign a definitive merger agreement within a month.
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ASG Acquires Startup Company Homebot
Private equity firm ASG has just acquired Homebot, an AI-powered provider of mortgage lending and real estate software, Housing Wire reports.
Homebot is a startup company based in Denver, which has raised $4.5 million in 2017 in a funding seed round led by Black Knight Financial Services. Homebot was cofounded by Ernie Graham and Ira McMahon in 2015 with the goal of developing a data and communication tool that parties in a home transaction can use. Graham and McMahon used to do research and product development with Realtor.com.
ASG is Alpine Investors' portfolio company. ASG's acquisition of Homebot is the firm's second in the proptech space and its first expansion into the residential real estate software.
Ernie Graham, Ira McMahon, and COO Michael Lynch will remain at the helm along with Charlie Pratt, who will be joining the leadership team as CRO. Homebot caters to thousands of loan officers nationwide with an average engagement rate of 50 percent per month.
