Solutionstar Holdings, an indirect wholly-owned subsidiary of Nationstar Mortgage Holdings (NSM), entered into a definitive agreement to acquire Experience 1, the holding company for Title365 and technology subsidiaries X1 Labs and X1 Xpress.
They are known collectively as Title365.
Through the transaction, Solutionstar expects to speed operations through added efficiency, by using Title365’s licenses to expand into new geographic markets, particularly in California. In a press statement, Nationstar indiciated that it's excited by these new revenue opportunities.
"We’ll be able to leverage this platform to process purchase and refi title/close business, as well as default title/close business, and it could also provide leads for Nationstar originations business," Nationstar spokesman John Hoffman tells HousingWire.
Title365’s clients include a variety of real estate brokerages, financial institutions and mortgage brokers.
"We’re focused on growing Solutionstar into a leading real estate technology company that makes buying and selling a home easier and more transparent for consumers and real estate professionals," Hoffman added.
The company expects to generate approximately $63 million of revenue in 2014, of which approximately 57% is from the purchase mortgage title business.
In its third-quarter earnings, Nationstar posted revenue of $504.3 million, down 20.2% year-over-year, but beating Wall Street estimates by $134.4 million.
Meanwhile, this acquisition is the latest in a series of growth initiatives Solutionstar has made to continue its development in real estate technology.
In May, Solutionstar acquired Real Estate Digital, a real estate data aggregation company that provides online marketing, data, transaction management and digital media solutions.
And earlier in November, the company hired technology executive Kal Raman as its CEO, bringing more than two decades of leadership at innovative, consumer-focused technology and retail companies.
“Acquiring RED was an important step in that evolution, and acquiring Title365 underscores Solutionstar’s commitment to leverage our technological expertise to deliver comprehensive, end-to-end online services for homebuyers, home sellers and real estate professionals,” Raman said.
“The acquisition of Title365 not only adds new technologies, products and third-party business to Solutionstar’s portfolio, but its management team boasts a strong reputation as an industry innovator with decades of title industry experience, and we are proud to introduce Title365 to the rapidly growing Solutionstar family,” Raman continued.