Fidelity National Financial's (FNF) agreement to buy Lender Processing Services Inc. (LPS) for about $2.9 billion has been adjusted to allow FNF to use more cash than had been originally planned.
FNF, the largest provider of commercial and residential mortgage and diversified services in the U.S., announced its plan to acquire LPS last week. Initially, it was to be a 50/50 cash/stock deal. However the companies announced on Wednesday that terms of the agreement had been modified to allow FNF to use an additional $500 million in cash, thus decreasing the stock component by the same amount.
As per the revisions, FNF will provide $300 million of the $500 million increase, with deal partner Thomas H. Lee Partners LP providing the remaining $200 million. The purchase price remains the same.
On May 28, LPS signed a definitive agreement under which FNF will acquire all of the outstanding stock of LPS for $33.25 per common share.