CoreLogic (NYSE:CLGX) agreed Monday to buy two Decision Insight Information Group units, Marshall & Swift/Boeckh and DataQuick Information Systems, for $661 million to broaden its portfolio of property data and expand its data and analytics business.
MSB offers building-cost software and claims estimating technology, as well as book-of-business management services, for the property insurance industry.
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DataQuick provides real-estate data, analytics and business software to real estate companies and mortgage lenders.
“In addition to the obvious financial benefits and cost synergies, the combination of CoreLogic, MSB and DataQuick should yield significant future growth opportunities through the introduction of new products, services and workflow tools which draw from a wide range of gold-standard data assets and analytical capabilities,” Anand Nallathambi, President and Chief Executive Officer of CoreLogic, said in a statement.
Chief Financial Officer Frank Martell said MSB and DataQuick are “high-margin; subscription-based business models that generate free cash flow conversion rates above CoreLogic standalone.” The deal is consistent with CoreLogic’s plan to grow its data and analytics segment to more than 50% of total revenue, he added.
The deal is expected to close during the third quarter and add to adjusted 2013 earnings.
Shares closed Friday at $23.17 and were inactive in pre-market trading. The stock is up about 26.5% over the last 12 months but has fallen nearly 14% year-to-date.