The First American Corporation, a provider of business information, announced that it has exercised its option to purchase Experian Information Solutions Inc.'s 20 percent ownership in the First American Real Estate Solutions LLC (FARES) joint venture. Under the terms of the option, the exercise price for Experian's ownership interest is $313.8 million and the transaction will close on Dec. 31, 2010. With the exercise of the purchase option, First American substantially eliminates Experian's veto rights under the joint venture agreement and significantly enhances the company's operational and organizational flexibility.
"Experian has been a valued partner in the FARES joint venture and we look forward to furthering our working relationship with them in the coming years," said Parker S. Kennedy, chairman and chief executive officer of The First American Corporation. "Our exercising of the purchase option, combined with our previously announced transactions for the noncontrolling interests in First Advantage Corporation and First American CoreLogic, provide us with control over substantially all of our assets as well as provide the Information Solutions Group with increased financial and operational flexibility as it prepares to be a stand-alone public company."
The previously announced separation of the Information Solutions Group from the Financial Services Group is targeted for June 1, 2010.
For more information, visit www.firstam.com.