Lender Processing Services Spikes on Plans to Rejoin with Fidelity National Financial

Michael Teague |

ForeclosureLender Processing Services (LPS), a provider of mortgage and consumer loan processing, was among the top three best-performing stocks in the services sector on Thursday on news that the company had reached the advanced stages of talks about a buyout deal with Fidelity National Financial Inc. (FNF) and the acquisitions firm Thomas H. Lee Partners.

Shares for LPS advanced over 12 percent to a 52-week high of $33.40. The $2.5 billion market cap company’s stock has gained 18.75 percent so far in 2013.



The proposed $2.9 billion deal breaks down to about $33 per share that would be paid to LPS shareholders partly with cash and partly with Fidelity National’s stock. Additionally, Thomas H. Lee would retain a 19.9 percent stake in Lender Processing as it becomes a subsidiary of Fidelity.

Lender Processing was spun off from Fidelity National Information Services only five years ago in June of 2008. In 2011, the company found itself mired in the foreclosure scandal known as “foreclosuregate,” during which the practice of “robo-signing,” the high-speed signing and approval of legal documents relating to home foreclosures by employees who had little to no knowledge about the contents of those documents, was revealed.

Fidelity National claims the mantle of the U.S.’s largest title insurer. The deal could be finalized as early as next week. Lender Processing Services has been unable to regain the $44 per share price it enjoyed prior to the eruption of the scandal that engulfed a number of other financial institutions

Shares for Fidelity National Financial were up 6 percent to $25.84.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
FNF FNF Group of Fidelity National Financial Inc. 44.58 0.43 0.97 1,781,343 Trade
HTBK Heritage Commerce Corp 13.02 -0.05 -0.38 1,299,340 Trade

Comments

Emerging Growth

Taranis Resources Inc.

Taranis Resources Inc is an exploration stage company. The Company along with its subsidiaries is engaged in the acquisition and exploration of mineral properties. Its projects include Thor Property in…

Private Markets

Santo Diablo Mezcal

Santo Diablo Mezcal has been created to capitalize on a boom sector of the beverage market currently full of many small unmemorable products by producing one sexy, household, easily recognizable…

Almond Smart Home Router by Securifi

Securifi sells user friendly touch screen routers that also have support for IoT/home automation.Securifi’s Almond revolutionized wireless router setup with its easy to use Touchscreen Interface in 2012. Now our…