The title industry is a growing industry, with record-breaking revenue being produced lately. Along with that, the merger and acquisition (M&A) trend is becoming popular in recent months as well. According to Deloitte, a major accounting organization, deal flow will increase in the next 12 months. Deloitte also said that financial services rank high as an industry likely to experience convergence. A significant reason behind M&A deals is the desire to acquire technology assets.
Many companies have been merging recently to expand the areas where they operate. Fidelity National Financial has been known for its significant acquisitions in the title space industry. In 2000, they acquired Chicago Title, and in 2008, they purchased LandAmerica. At this point, the combined companies had 46 percent of the market. Now, though, Fidelity is acquiring Stewart Information Services Corp. The deal is expected to close at some point in 2019, which will then allow Fidelity to expand and grow the company as they please.
Radian Group Inc. is also staying with the merging trend as they just bought EnTitle Direct Group Inc. Radian Group had also acquired ValuAmerica in past years, and EnTitle Direct is thought to complement the geographic reach of these two companies merger.
Presidio Investors recently agreed to partner and invest in Alliant National Title Insurance Co. This partnership is supposed to accelerate plans to expand its network of independent agents. The company will now have more opportunities to help title agents grow their business.
It is very likely that we will see even more acquisition activity over the next year in the title industry. M&A is significant in the title industry because of how it helps companies expand their reach.
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