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First American Financial Makes an Acquisition

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

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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.

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Stocks Mentioned

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

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