First American Financial Corporation (NYSE: FAF), a leading global provider of title insurance, settlement services and risk solutions for real estate transactions, and Docutech, a leading provider of document, eClose and fulfillment technology for the mortgage industry, announced today the signing of an agreement for First American's acquisition of Docutech.
Founded in 1991, Docutech is a respected industry leader that leverages technology to help financial institutions quickly and accurately provide regulatory-compliant loan documents for mortgage and home equity lending. The company's innovative solutions are widely used by lenders across the U.S. and have contributed to the industry's evolution toward a digital real estate closing experience.
"The acquisition of Docutech reflects our steadfast commitment to invest in and grow our core business. Moreover, it demonstrates our dedication to improving the home-buying experience for consumers and driving the digital transformation of the real estate settlement process," said Dennis J. Gilmore, chief executive officer at First American Financial Corporation. "We're excited to soon welcome to First American the people of Docutech, a highly respected leader in the document technology solutions industry. Together, we will accelerate the evolution of real estate closings."
The acquisition of Docutech and its innovative technology complements First American's existing capabilities and industry-leading property and homeownership data, advancing First American's ability to provide lender customers with end-to-end digital mortgage and settlement services. Docutech's technology platform, which is fully integrated with leading third-party and proprietary loan origination systems and reaches more than 175 lenders, deepens First American's relationships with these industry players.
Docutech's management team, including President and CEO Amy Brandt, will continue to lead the company's operations.
"Joining the First American family strengthens our ability to provide products and services that help lenders offer a more digital mortgage experience and adapt to today's changing business landscape. The Docutech team will now have enhanced access to First American's industry-leading property data and its other industry-leading products and services, further enhancing the quality, accuracy and speed of our services," said Brandt. "Our employees will also benefit by being part of a company named to the Fortune 100 Best Companies to Work For® list four years in a row."
The acquisition is expected to be accretive to First American's earnings in 2020. The transaction is expected to close by the end of March, subject to customary closing conditions.
In connection with the transaction, BofA Securities is acting as financial advisor to First American and Raymond James is acting as financial advisor to Docutech.
About First American
First American Financial Corporation (NYSE: FAF) is a leading provider of title insurance, settlement services and risk solutions for real estate transactions that traces its heritage back to 1889. First American also provides title plant management services; title and other real property records and images; valuation products and services; home warranty products; property and casualty insurance; banking, trust and wealth management services; and other related products and services. With total revenue of $5.7 billion in 2018, the company offers its products and services directly and through its agents throughout the United States and abroad. In 2019, First American was named to the Fortune 100 Best Companies to Work For® list for the fourth consecutive year. More information about the company can be found at www.firstam.com.
Docutech offers a wide range of document technology solutions for mortgage, home equity and consumer lending, from document generation to eDelivery, eSign, eClose and print fulfillment. The company sets the standard in providing market-proven technology and unrivaled customer service to the financial industry. Docutech's knowledge and solutions empower lending professionals to efficiently produce accurate loan packages in all 50 states to ensure compliance with constantly changing laws and regulations. Docutech was founded in 1991 and, in 2016, partnered with Serent Capital, a private equity firm based in San Francisco and Austin, Texas. For more information, visit the company's website at www.docutech.com.
Certain statements made herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and may contain the words "believe," "anticipate," "expect," "intend," "plan," "predict," "estimate," "project," "will be," "will continue," "will likely result," or other similar words and phrases or future or conditional verbs such as "will," "may," "might," "should," "would," or "could."
These forward-looking statements include, without limitation, statements regarding the completion of the transaction and the timing thereof as well as the effects thereof, including the acceleration of the evolution of digital real estate closings and the accretive nature of the acquisition to the company's earnings. These forward-looking statements are based on current expectations and assumptions that may prove to be incorrect. Risks and uncertainties exist that may cause results to differ materially from those set forth in these forward-looking statements. Factors that could cause the anticipated results to differ from those described in the forward-looking statements include, without limitation: the failure to obtain necessary governmental or other approvals in a timely fashion or at all; challenges to the proposed transaction or issues related thereto; regulatory-, technology- or business-related challenges or issues pertaining to the evolution of digital real estate closings; and the accuracy of future earnings projections.
The forward-looking statements speak only as of the date they are made. The company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.
These press releases may also interest you