The First American Corporation has exercised its option to purchase Experian Information Solutions Inc.'s 20% ownership in the First American Real Estate Solutions LLC 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 at the end of the year. With the exercise of the purchase option, First American substantially eliminates Experian's veto rights under the joint venture agreement and enhances the company's operational and organizational flexibility, according to the company.
‘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," says Parker S. Kennedy, chairman and CEO of First American.
The previously announced separation of the Information Solutions Group from the Financial Services Group is targeted for June 1.
SOURCE: The First American Corporation