FIRST AMERICAN COMPLETES ACQUISITION OF CREDIT MANAGEMENT SOLUTIONS
May 31, 2001, SANTA ANA, Calif.
The First American Corporation (NYSE:FAF), the nation’s leading, diversified provider of business information and related products and services, and Credit Management Solutions, Inc. (“CMSI”) (NASDAQ:CMSS), a premier technology provider of credit automation software and services, jointly announced today that First American has completed its acquisition of CMSI. The acquired entity will be known as First American CMSI.
As a result of the acquisition, which was approved by CMSI shareholders on May 29, 2001, CMSI shareholders will receive 0.2841 newly issued shares of First American common stock for each CMSI common share. First American will account for the stock-for-stock transaction as a purchase and will issue approximately 2,273,000 new shares of common stock.
“CMSI processes more than a quarter of a million credit transactions each month, and it has very strong business relationships with some of the world’s largest auto dealers and lenders,” said Anand K. Nallathambi, president of First American’s Consumer Information Group. “We expect the acquisition of CMSI will allow us to expand our consumer segment and provide opportunities to cross market our other valuable auto-related products and services, including merged credit reports, subprime credit data and automobile insurance tracking.”
CMSI’s president and chief executive officer, Scott L. Freiman said: “I am extremely proud of what CMSI has accomplished over its 15-year history. We look forward to continued success as a part of the First American family.”
The First American Corporation, based in Santa Ana, Calif., is the nation’s leading, diversified provider of business information and related products and services. The corporation's three primary business segments include: title information and services; real estate information and services, which includes mortgage information services and database information and services; and consumer information and services, which provides automotive, sub-prime and direct-to-consumer credit reporting; direct-to-consumer public records reporting; resident screening; pre-employment screening; property and automotive insurance tracking services; property and casualty insurance; home warranties; investment advisory; and trust and banking services. Information about the company and an archive of its press releases can be found on the Internet at www.firstam.com .
Since it was founded in 1987, CMSI has been a premier provider of credit automation software and services, including online lending and leasing technology. The company’s e-commerce subsidiary, Credit Online, Inc., credit-enables business-to-business transactions through its Internet gateway and its patented CreditConnection® technology (www.creditconnection.com), which links credit originators such as automobile dealers and borrowers with an extensive network of leading prime and nonprime lenders. Through its CMSI Systems, Inc. subsidiary, CMSI licenses credit decisioning and other automation systems and services for consumer and business credit that have been the choice of the world's largest and most demanding lending institutions. Additional information on CMSI, is available at www.cmsinc.com.
Certain statements made in this press release, including those relating to the expected benefits of the merger, are forward-looking. Risks and uncertainties exist which 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: the possibility that the anticipated benefits from the merger cannot be fully realized; the possibility that costs or difficulties related to the integration of CMSI’s business with that of First American will be greater than expected; each company’s ability to compete in highly competitive and rapidly changing marketplaces; interest rate fluctuations; changes in the performance of the real estate markets; general volatility in the capital markets; changes in applicable government regulations; consolidation among the companies’ significant customers and competitors; legal proceedings commenced by the California attorney general and related litigation; the company’s continued ability to identify businesses to be acquired; changes in the company's ability to integrate businesses which it acquires; and other factors described in the companies’ periodic reports filed with the Securities and Exchange Commission, including, but not limited to, their respective Annual Reports on Form 10-K for the year ended Dec. 31, 2000. The forward-looking statements speak only as of the date they are made. The companies do not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.