One of the biggest title insurance companies is about to be one giant step closer to enabling fully digital mortgages, as First American announced Thursday morning that it reached an agreement to buy Docutech for $350 million.
Docutech, a document, eSign, eClosing and compliance technology provider, is one of the top tech companies in the housing industry. The company’s digital document technology is used by Black Knight, Ellie Mae, Fiserv, CoreLogic, Blend, Tavant, Floify, Maxwell, Roostify and more than 175 lenders, just to name a few.
And now, the company is set to join the First American family of companies.
According to the companies, First American and Docutech reached an agreement that will see the First American pay $350 million in cash for Docutech.
For First American, the acquisition is all about the move towards fully digital mortgages and mortgage closings. And as many big companies are doing these days to grow, First American is choosing to buy a solution rather than build one.
“The acquisition of Docutech reflects our steadfast commitment to invest in and grow our core business. Moreover, it demonstrates our dedication to improving the home-buying experience for consumers and driving the digital transformation of the real estate settlement process,” said First American CEO Dennis Gilmore.
“We’re excited to soon welcome to First American the people of Docutech, a highly respected leader in the document technology solutions industry,” Gilmore added. “Together, we will accelerate the evolution of real estate closings.”
In a release, First American said that by acquiring Docutech, the company will improve its ability to provide lenders with “end-to-end digital mortgage and settlement services.”
First American also said the acquisition will “deepen” the company’s relationships with all of the companies that are currently using Docutech’s products.
According to the companies, Docutech’s current management team, including President and CEO Amy Brandt, will continue to lead the company’s operations after the acquisition closes.
“Joining the First American family strengthens our ability to provide products and services that help lenders offer a more digital mortgage experience and adapt to today’s changing business landscape,” Brandt said in a release. “The Docutech team will now have enhanced access to First American’s industry-leading property data and its other industry-leading products and services, further enhancing the quality, accuracy and speed of our services.”
According to the companies, the deal is expected to close by the end of March.