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CoreLogic expanding valuation business, announces acquisition of Mercury Network

In last few years, CoreLogic also acquired LandSafe, FNC, and RELS

Over the last several years, CoreLogic launched and significantly grew its valuations division through a series of substantial acquisitions, buying LandSafe Appraisal Services, FNC, and RELS for a total purchase price of approximately $587 million.

And it looks like CoreLogic isn’t done growing its valuations business either, as the company announced Tuesday that it is acquiring Mercury Network, a purchase valuation technology and appraisal management platform provider.

CoreLogic is buying Mercury Network from Serent Capital, which bought Mercury Network from a la mode back in 2015.

Since then, Mercury Network went on a bit of buying spree as well, acquiring Platinum Data Solutions, a QC technology company, in 2016, and announcing earlier this year that it planned to acquire Appraisal Scope, a provider of valuation management software.

Now, Platinum Data Solutions, Appraisal Scope, and Mercury Network will soon be a part of CoreLogic.

Under the terms of the deal, CoreLogic has already acquired a 45% passive minority stake in Mercury Network. According to a release from CoreLogic, the purchase of the remaining 55% of Mercury Network is expected to close later this year.

In a release, CoreLogic President and CEO Frank Martell said that the acquisition is part of the company’s plan to continue to grow its valuations market share.

“Mercury Network’s platforms complement the CoreLogic appraisal technology platforms and analytics business acquired from FNC in 2016,” Martell said.

“They will broaden the reach of CoreLogic’s valuation technology products and services to smaller and medium-sized lenders and AMCs,” Martell continued. “Through this acquisition, CoreLogic will improve its value proposition and go to market strategy for its broad range of valuation-related data and analytics to this important and growing segment of the industry.”

Last year, CoreLogic closed on the acquisition of FNC, a provider of real estate collateral information technology and solutions that automate property appraisal ordering, tracking, documentation and review for lender compliance with government regulations, for a total purchase price of $400 million.

That deal came on the heels of CoreLogic purchasing LandSafe, an appraisal management company, from Bank of America for $122 million in 2015.

CoreLogic purchased the rest of RELS, a provider of property valuation and appraisal services, from Wells Fargo in 2016. Prior to the acquisition, RELS operated under the joint ownership of CoreLogic and Wells Fargo, with CoreLogic previously owning 50.1% of the company and Well Fargo owning the remaining 49.9%.

Under the terms of the agreement, CoreLogic was to pay $65 million to Wells Fargo for its ownership interest in RELS.

Those acquisitions proved to be good for CoreLogic’s business as its valuations segment drove business growth last year.

And now, CoreLogic is growing this business again.

In its release, CoreLogic said the acquisition of Mercury Network is “expected to be accretive to adjusted EPS and provide organic growth synergies to the company on a go forward basis.”

Additionally, CoreLogic said that it plans to continue to offer Mercury Network’s technology platforms and related services to “emerging lenders and AMCs” while focusing its FNC technology offering on larger lenders.

“We’re very excited to bring the Mercury Network team into the CoreLogic family and their passion and expertise into our valuation solutions offerings,” Martell concluded.

Financial terms of the deal were not disclosed.

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