The First American Corporation Announces Exercises Option to Acquire Experian's Interest in Joint Ve
—Transaction Will Finalize Buy-out of Noncontrolling Interests—
April 22, 2010, SANTA ANA, Calif.
The First American Corporation (NYSE: FAF), America’s largest provider of business information, announced today that it has exercised its option to purchase Experian Information Solutions, Inc.’s 20 percent ownership in the First American Real Estate Solutions, LLC (FARES) joint venture.
Under the terms of the option, the exercise price for Experian’s ownership interest is $313.8 million and the transaction will close on Dec. 31, 2010. With the exercise of the purchase option, First American substantially eliminates Experian’s veto rights under the joint venture agreement and significantly enhances the company’s operational and organizational flexibility.
“Experian has been a valued partner in the FARES joint venture and we look forward to furthering our working relationship with them in the coming years,” said Parker S. Kennedy, chairman and chief executive officer of The First American Corporation. “Our exercising of the purchase option, combined with our previously announced transactions for the noncontrolling interests in First Advantage Corporation and First American CoreLogic, provide us with control over substantially all of our assets as well as provide the Information Solutions Group with increased financial and operational flexibility as it prepares to be a stand-alone public company.”
The previously announced separation of the Information Solutions Group from the Financial Services Group is targeted for June 1, 2010.
About First American
The First American Corporation (NYSE: FAF) is a FORTUNE 500® company that traces its history to 1889. With total revenues of approximately $6.0 billion in 2009, it is America’s largest provider of business information. First American combines advanced analytics with its vast data resources to supply businesses and consumers with valuable information products to support the major economic events of people’s lives, such as getting a job, renting an apartment, buying a car or house, securing a mortgage and opening or buying a business. The First American Family of Companies, many of which command leading market share positions in their respective industries, operate within five primary business segments, including: Title Insurance and Services, Specialty Insurance, Information and Outsourcing Solutions, Data and Analytic Solutions, and Risk Mitigation and Business Solutions. 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 expected closing of the purchase of Experian’s interest in FARES, the anticipated effect of the exercise of the call option, the expected increased financial and operational flexibility the Experian, FADV and First American CoreLogic transactions will bring to the Information Solutions Group and the timing and consummation of the spin-off separation transaction, are “forward-looking statements.” These forward-looking statements may contain the words “intend,” “anticipate,” “expect,” “plan,” “predict,” “estimate,” “project,” “will be,” “will continue,” “will likely result” or other similar words and phrases. 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 those described in Part I, Item 1A of First American’s annual report on Form 10-K for the year ended Dec. 31, 2009. The forward-looking statements speak only as of the date they are made. Except as required by law, First American does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.