Please ensure Javascript is enabled for purposes of website accessibility

First American Financial Makes an Acquisition

By Eric Volkman – Feb 6, 2014 at 5:00PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

First American Financial signs an agreement with Verisk Analytics to buy Interthinx.

First American Financial (FAF 1.86%) will soon add another asset to its portfolio. The company announced today that it has reached a deal with Verisk Analytics (VRSK 3.83%) to acquire Interthinx, a firm it describes as "a leading provider of loan quality analytics, decision support tools and loan review services for the mortgage industry." The price is $155 million.

Interthinx was founded in 1996. Its best-known product is FraudGUARD, a fraud analytics solution.

In the press release trumpeting the news, First American Financial quoted its CEO Dennis Gilmore as saying that "the added capabilities of Interthinx will allow us to leverage our central role in real estate transactions to offer our customers further assurances in areas that present risk, including fraud; identity and income validation; collateral adequacy; and compliance."

The transaction is expected to close by the end of next month, and be accretive to First American's 2014 earnings.

The announcement comes exactly a week before the company is slated to release its Q4 2013 results. On average, analysts are expecting a per-share profit of $0.50 on  revenues of $1.1 billion.

Eric Volkman has no position in any stocks mentioned. The Motley Fool recommends First American Financial. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Nearly 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

First American Financial Stock Quote
First American Financial
$54.65 (1.86%) $1.00
Verisk Analytics Stock Quote
Verisk Analytics
$183.71 (3.83%) $6.78

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/30/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.