First American Completes Acquisition of SNK Holdings/LOGS
–Strengthens First American as Number One Service Provider to Default Industry and Expands Counter-Cyclical Revenue–
June 16, 2004, SANTA ANA, Calif.
The First American Corporation (NYSE: FAF), the nation’s largest data provider, today announced that it has completed its acquisition of privately held, mortgage default services provider SNK Holdings, Inc. and its subsidiary operations, including LOGS Financial Services to create First American National Default Outsourcing (NDO), a growing component of First American’s Mortgage Information Services group.
As previously announced, the combination of these businesses will be immediately accretive to First American. The combination of default servicing operations, technology integration, process improvements and other synergies, will reduce First American National Default Outsourcing’s annual operating expenses by $5 million within the first 12 months. The acquisition will also strengthen First American’s counter-cyclical revenue base, as the company will now serve approximately 60 percent of the default outsourcing market.
Based in Northbrook, Ill., SNK/LOGS is the second largest mortgage default services provider in the nation. The company has established the industry’s premier system for complete process outsourcing. With the addition of the LOGS platform, First American now can offer its lender customers either full-service onsite default assistance, or complete outsource management of default operations at a First American NDO support facility.
“The combination of the LOGS platform with the efficiencies provided by First American’s best-in-class default technologies, VendorScape/CMS, iClear and eDAISY, puts First American in a position to offer truly comprehensive default management to the servicing industry,” said James C. Frappier, president of First American Default Management Solutions.
First American National Default Outsourcing has established headquarters in Lewisville, Texas, and will continue to manage and direct outsourcing activities from its regional offices in Milwaukee; Northbrook, Ill.; and Jacksonville, Fla. First American will also work to maximize service levels by continuing to utilize its existing attorney/agent network, as well as the LOGS network of agents nationwide.
The First American Corporation is a Fortune 500 company that traces its history to 1889. As the nation's largest data provider, the company supplies businesses and consumers with information resources in connection with the major economic events of people's lives, such as getting a job; renting an apartment; buying a car, house, boat or airplane; securing a mortgage; opening or buying a business; and planning for retirement. The First American Family of Companies, many of which command leading market share positions in their respective industries, operate within six primary business segments including: Title Insurance and Services, Specialty Insurance, Mortgage Information, Property Information, Credit Information and Screening Information. With revenues of $6.2 billion in 2003, First American has 29,000 employees in approximately 1,800 offices throughout the United States and abroad. More information about the company and an archive of its press releases can be found at www.firstam.com.
Certain statements made in this press release, including those related to the addition of the LOGS platform, earnings accretion, operating expenses and revenue base are forward looking. 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: interest rate fluctuations; changes in the performance of the real estate markets; access to public records and other data; general volatility in the capital markets; changes in applicable government regulations; consolidation among the company’s significant customers and competitors; 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 company’s Annual Report on Form 10-K for the year ended Dec. 31, 2003, as filed with the Securities and Exchange Commission. 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.