First American Acquires Experian Real Estate Services
– Addition of Mortgage Credit Business and Related Services Expands Market Share and Solidifies Relationships With Top-Tier Lender Customers –
April 14, 2005, SANTA ANA, Calif.
The First American Corporation (NYSE: FAF), the nation’s largest data provider, today announced it has acquired Experian Real Estate Services (RES), formerly CBA Information Services, the direct mortgage credit reporting arm of Experian North America. The acquisition closed March 30, 2005, for an undisclosed purchase price.
Headquartered outside of
Parker S. Kennedy, chairman and chief executive officer of The First American Corporation said: “This acquisition further strengthens our relationship with Experian and sets the stage for us to grow in the specialty credit services industry. Experian RES has a collection of affiliated credit- reporting agencies that have established a solid reputation among mortgage brokers and other clients by providing high quality services. As Experian consolidates these affiliate bureaus, we are excited to have the opportunity to add them to our operations, and we expect to benefit from the additional market share and opportunities to cross sell our settlement products to this expanded market.”
Chris Callero, chief executive officer of Experian North America stated: “The sale of Experian Real Estate Services to First American is a continuation of our commitment to the strong partnership between our two companies. It allows us to focus on our core credit business lines outside of the mortgage industry, while still participating in the growth in these businesses through our existing joint venture with First American. Experian will continue to be the preferred provider of credit reporting services to First American CREDCO and will contribute to the value-added services they provide to the mortgage and automotive finance sectors.”
“With the addition of Experian RES’ ‘pick-and-choose’ credit-merge technology to First American’s current suite of advanced merged-credit data options, we are now better able to serve the mortgage finance industry by offering every type of merge technology on the market, all available from one source – First American,” said Anand K. Nallathambi, president of The First American Corporation’s Credit Information Group. “Our customers will immediately benefit from an extended product lineup, but the real benefit will come as we leverage our combined expertise and the input of our clients to develop the next generation of specialized credit and screening products for the mortgage industry.”
Experian RES, which has approximately 90 employees, will be organized as a subsidiary of First American CREDCO. Walt Wojciechowski, the current senior vice president will continue to manage the company as senior vice president, reporting directly to Kathy Manzione, president of First American CREDCO Mortgage.
In March, The First American Corporation announced its intent to sell its Credit Information Group (CIG) to its majority-owned subsidiary, First Advantage Corporation (NASDAQ: FADV). The acquisition of the highly complementary credit-related services of CIG will further First Advantage’s position as a leading business information and services provider by adding significant scale and creating a unique combination of data ownership, access and distribution. Today, First Advantage provides a suite of services to assist more than 45,000 clients nationwide with information to minimize risks undertaken when employing, leasing, underwriting, contracting and investing in people. First Advantage is a leader in all of its key business lines, which, following the transaction closing, will expand to include the mortgage/home equity credit, automotive finance and direct-to-consumer credit markets currently dominated by First American’s Credit Information Group.
Experian is a global leader in providing information solutions to organizations and consumers. It helps organizations find, develop and manage profitable customer relationships by providing information, decision-making solutions and processing services. It empowers consumers to understand, manage and protect their personal information and assets. Experian works with more than 50,000 clients across diverse industries, including financial services, telecommunications, health care, insurance, retail and catalog, automotive, manufacturing, leisure, utilities, e-commerce, property and government. Experian is a subsidiary of GUS plc and has headquarters in
About First American CREDCO
First American CREDCO, a member of the First American Family of Companies, processes millions of credit transactions annually and is the industry’s technology and service leader. The company is the leading provider of specialty credit reports to the mortgage, consumer finance and automotive industries. First American CREDCO proudly serves a broad range of lending and retail markets with a variety of credit information products and services. More information about the company can be found at www.credco.com.
About The First American Corporation
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 $6.72 billion in 2004, First American has 31,000 employees in approximately 2,000 offices throughout the
Certain statements made in this press release, including those related to expanding market share, solidifying relationships with lender customers, anticipated growth in the specialty credit services industry and the effects of cross selling, 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; limitations on 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, 2004, 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.