CoreLogic Acquires Full Ownership of RELS, LLC
Email Dan Smith
January 05, 2016, Irvine, Calif. –
Expands Capabilities and Scale of Valuation Solutions Group
- RELS, LLC, a leading provider of property valuation and appraisal services, was previously owned 50.1% by CoreLogic.
- Acquisition adds scale and combined Company creates integrated property valuation solution provider powered by a broad suite of fulfilment, data and analytics capabilities and assets.
- CoreLogic’s Valuation Solutions Group (VSG) expected to facilitate significant future growth opportunities in the U.S. and globally.
- Purchase price of $65 million; accretive to 2016 financial results.
CoreLogic (NYSE:CLGX), a leading global property information, analytics and data-enabled services provider, today announced the Company has completed the acquisition of the 49.9% interest of Wells Fargo Bank, N.A. in RELS, LLC (RELS). RELS is a leading nation-wide provider of real estate asset valuation and appraisal solutions. RELS offers its clients access to high quality and experienced valuation professionals; electronic property appraisal ordering, tracking and fulfillment services and workflow best practices.
“RELS has been a leading provider of property valuation services for almost two decades under the joint ownership of CoreLogic and Wells Fargo. Consolidating our ownership of RELS represents a logical next step in expanding the capabilities and scale of our property valuations offerings,” said Anand Nallathambi, President and Chief Executive Officer of CoreLogic. “RELS’s market leadership and proven operational excellence; together with our existing valuation-related assets and our recent acquisition of LandSafe Appraisal Services and the pending acquisition of FNC, allow us to bring unique insights and compelling solutions to the marketplace which should generate significant topline growth opportunities for CoreLogic in 2016 and beyond,” added CoreLogic Chief Operating and Financial Officer Frank Martell.
“CoreLogic, through its management of the RELS AMC operations, has consistently demonstrated its value as a service provider with a strong commitment to quality products and services,” said Franklin Codel, Executive Vice President, Wells Fargo Home Lending. “Our teams will continue to work well together and we expect CoreLogic to remain a valued service provider and an important part of Wells Fargo’s valuation vendor management strategy. The sale is not material to Wells Fargo and represents the end of Wells Fargo’s ownership interest in RELS, LLC.”
RELS’s operating results will be fully consolidated into CoreLogic’s financial reporting beginning in the first quarter of 2016. Previously, RELS operating results had been reflected in the Company’s financial reporting, in line with its ownership percentage, as a component of equity in earnings of affiliates. The transaction is expected to be accretive to 2016 financial results excluding one-time integration investments and reductions from transitional accounting items. The transaction was funded using cash on hand.
Media Contact: Alyson Austin, office phone: 949-214-1414, e-mail: firstname.lastname@example.org
Investor Contact: Dan Smith, office phone: 703-610-5410, e-mail: email@example.com
CoreLogic (NYSE: CLGX) is a leading global property information, analytics and data-enabled services provider. The Company's combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector.CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.
Safe Harbor / Forward Looking Statements
Certain statements made in this press release are forward-looking statements within the meaning of the federal securities laws, including but not limited to those statements related to the accretive nature of the proposed transaction and the projected future revenues of RELS LLC or the VSG; the Company’s expected synergies with respect to the proposed transaction; the Company's investment and strategic growth plans, productivity excellence and information technology; as well as the Company's overall financial performance, including future revenue and profit growth. Risks and uncertainties exist that may cause the 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 the risks and uncertainties set forth in Part I, Item 1A of our most recent Annual Report on Form 10-K, as amended or updated by our Quarterly Reports on Form 10-Q. These additional risks and uncertainties include but are not limited to: limitations on access to or increase in prices for data from external sources, including government and public record sources; changes in applicable government legislation, regulations and the level of regulatory scrutiny affecting our customers or us, including with respect to consumer financial services and the use of public records and consumer data; compromises in the security of our data, including the transmission of confidential information or systems interruptions; difficult conditions in the mortgage and consumer lending industries and the economy generally; our ability to protect proprietary rights; our cost reduction programs, information technology and growth strategies and our ability to effectively and efficiently implement them; risks related to the outsourcing of services and international operations; our indebtedness and the restrictions in our various debt agreements; our ability to realize the anticipated benefits of certain acquisitions and/or divestitures and the timing thereof; including, without limitation, those related to the acquisition of RELS LLC described herein; the inability to control the operations or dividend policies of our partially-owned affiliates; and impairments in our goodwill or other intangible assets. 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.