First American Financial Corporation and ServiceMac signed an agreement for First American to acquire ServiceMac. With the agreement, First American will acquire a minority interest in ServiceMac's parent company, which will then convert into equity of ServiceMac at the closing of the acquisition, according to a press release. The acquisition is scheduled to take place by the end of 2021.
"The acquisition of ServiceMac reflects our steadfast commitment to support the mortgage industry and further expand our product innovation efforts," said Dennis J. Gilmore, CEO at First American Financial Corporation.
According to the release, the acquisition will give First American the ability to provide lenders and servicers with an end-to-end mortgage, settlement, post-closing services and servicing-related products and solutions. Additionally, ServiceMac will have access to First American’s property and homeownership data and mortgage solutions products. ServiceMac's management team, including president and CEO Bob Caruso, will continue to lead the company's operations.
“Joining the First American family accelerates our ability to develop new products and services that benefit our lender customers and their clients while strengthening our position as a counterparty in the mortgage finance ecosystem,” said Caruso.