Constancy Paying Black Knight $225M to Deliver TitlePoint Again Into the Fold

With ICE’s acquisition of Black Knight pending, title insurer workouts proper to purchase again title search and order administration resolution.

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The pending merger of two mortgage expertise giants has offered a possibility for the nation’s greatest title insurer, Constancy Nationwide Monetary (FNF), to develop its tech portfolio by shopping for again a enterprise it spun off practically a decade in the past.

A subsidiary of FNF pays Black Knight Inc. $225 million to amass TitlePoint, a title search and order administration resolution that gives entry to title vegetation and land file paperwork, the businesses introduced Friday.

Mike Nolan

“The acquisition of TitlePoint is only one extra method FNF is investing in, increasing, and integrating property information, photographs, and search expertise into FNF’s present belongings,” FNF CEO Mike Nolan mentioned in a assertion. “Mixed with different FNF digital applied sciences, this acquisition improves productiveness and automation and streamlines the manufacturing of title plant data throughout our business main footprint.”

FNF was a majority proprietor of Black Knight earlier than spinning the corporate off in 2015 and divesting its remaining shares in 2017. Beneath a 2014 settlement, FNF retained the precise to repurchase TitlePoint if Black Knight was later acquired by one other firm. When Black Knight this yr agreed to be acquired by rival Intercontinental Alternate Inc. (ICE), FNF notified Black Knight of its need to repurchase TitlePoint.

Joe Nackashi

Joe Nackashi

“This transaction allows us to focus our investments in our mortgage-specific software program and our core information and analytics capabilities, whereas additionally lowering our revenues which can be delicate to origination volumes,” Black Knight CEO Joe Nackashi mentioned in a assertion.

Throughout the third quarter of 2022, TitlePoint generated about $10 million in income, together with $7.2 million that “have been extra delicate to fluctuations in dwelling shopping for exercise and origination volumes,” Black Knight mentioned.

Whereas ICE’s acquisition of Black Knight remains to be pending approval by antitrust regulators, “The sale of TitlePoint just isn’t conditioned on the completion of ICE’s acquisition of Black Knight,” Black Knight disclosed in a regulatory submitting.

On a Nov. 2 earnings name, ICE CEO Jeffrey Sprecher mentioned the Black Knight merger stays topic to overview by the Federal Commerce Fee, however is anticipated to shut throughout the first half of 2023.

Since buying TitlePoint in 2014 (by way of FNF’s acquisition of Black Knight’s predecessor, Lender Processing Providers), Black Knight mentioned it has regularly enhanced and superior its technological capabilities and protection.

In 2017, Black Knight introduced the launch of TitlePoint model 5.0, which merged the expertise underlying Black Knight’s title search and order administration purposes. Black Knight additionally introduced that it could present TitlePoint purchasers with entry to expanded title information as a part of an ongoing plant modernization challenge with FNF.

FNF’s secure of actual property expertise firms contains SoftPro, a supplier of closing, title, and escrow software program options; NextAce, a pioneer in automating title search and examination; ServiceLink Public sale, a full-service public sale platform for brief gross sales and foreclosed properties; CINC (Commissions Inc.) a supplier of actual property advertising and marketing and CRM software program for actual property brokers and brokers; Actual Geeks, a lead technology and administration resolution for actual property brokers; and SkySlope, a digital transaction administration platform for actual property brokerages.

In 2020, FNF issued 27 million shares of widespread inventory and paid $1.8 billion in money to purchase FGL Holdings, a supplier of annuity and life insurance coverage merchandise, as a income that’s counter-cyclical to FNF’s title insurance coverage enterprise. It’s FNF subsidiary F&G Annuities & Life Inc. that’s buying TitlePoint.

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