Fidelity National Financial Inc. (FNF)
has announced the acquisition of the title insurance company Stewart Information Services Corporation for $1.2 billion. FNF will enact the transaction through a combination of cash, debt financing and the issuance of FNF common stock to Stewart stockholders.
"We are excited to welcome Stewart, its employees and its customers to the FNF family," said FNF Chairman William P. Foley II. "The venerable Stewart brand has a long and respected history in the title insurance industry and we see tremendous potential in working with the Stewart management team to invest in and grow the Stewart brand on a national basis as part of our long-time, successful strategy of operating multiple title insurance brands under the FNF umbrella."
The transaction is expected to close in either the first or second quarter of 2019. Stewart noted that if the deal is not completed for failure to obtain the required regulatory approvals, Fidelity is required to pay a reverse break-up fee of $50 million to Stewart.