LEWISVILLE, Texas--(BUSINESS WIRE)--As part of its continuing growth as the nation’s premier real estate technology company, Solutionstar Holdings LLC, an indirect wholly-owned subsidiary of Nationstar Mortgage Holdings Inc. (NYSE: NSM) (“Nationstar”), today announced that it has entered into a definitive agreement to acquire Experience 1, Inc., the holding company for Title365 and technology subsidiaries X1 Labs and X1 Xpress (collectively, “Title365”).
Consistent with Solutionstar’s ongoing effort to streamline the real estate experience, Title365 provides innovative, fresh solutions that leverage technology to make title insurance and escrow services more convenient and more efficient for their clients. The platform’s online convenience and functionality seamlessly brings homeowners and real estate professionals together – bolstering Solutionstar’s broader effort to deliver a truly integrated, comprehensive online real estate solution. In addition to delivering exceptional services to Title365's existing clients, Solutionstar intends to capitalize on Title365's significant growth prospects by expanding into new markets, leveraging its advanced technology platform to attract new third party clients and offering new innovative products.
Today’s announcement is the latest in a series of strategic moves Solutionstar has made to continue its development as a leader in real estate technology. This past May, Solutionstar acquired Real Estate Digital (“RED”), a real estate data aggregation company that provides online marketing, data, transaction management and digital media solutions. Earlier this month, the company announced hiring noted technology executive Kal Raman as its CEO; Mr. Raman boasts more than two decades of leadership at innovative, consumer-focused technology and retail companies, including Groupon, eBay and Amazon.
“When I was hired to take the helm at Solutionstar, we promised to continue to make significant, sustained investments in innovation and expand our products and services to elevate the company as a national leader in real estate technology. 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,” said Solutionstar CEO Kal Raman. “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.”
“We continue to believe in the power of technology to make buying and selling a home more transparent, convenient and affordable, and today’s announcement represents an important next step in Solutionstar’s growth as a premier real estate technology company. Acquiring Title365 reflects our ongoing commitment to pursue technology-driven fee-based services companies that broaden our product offerings and position us as a real estate technology innovator and the preferred provider of real estate services to financial institutions, home owners and real estate agents,” said Nationstar CEO Jay Bray.
Eric Swenson, Chairman of Title365, added, “Title365 has always prided itself on taking a fresh, innovative approach to title insurance and escrow services, and we’re very excited to become a part of one of the fastest-growing real estate technology companies in the industry. I am extremely excited about the prospect of leading the combined title enterprise under the Title365 brand and continuing our acute focus on delivering exceptional new and existing services to our third-party customers.”
Title365’s clients include a broad array of nationally recognized real estate brokerages, financial institutions and mortgage brokers; the company expects to generate approximately $63 million of revenue in 2014, of which approximately 57% is purchase money title business.
Title365 will enable Solutionstar to expand its purchase title services, further diversify its revenue streams through access to a significant third-party customer base, adopt industry leading workflow technology and position the combined enterprise as a premier national title player and innovator. It is expected that the acquisition will generate financial and operational synergies including the ability to utilize Title365’s licenses to expand into new geographic markets, particularly in California, resulting in both cost savings as well as new revenue opportunities. The acquisition is expected to be accretive to earnings.
Subject to customary approvals and consents, the transaction is anticipated to close in January 2015 for $36 million in cash with additional consideration dependent on the ongoing involvement of certain key employees and achieving certain performance targets. Title365 was advised by JMP Securities.
Based in Lewisville, Texas, Solutionstar is an independently managed and operated provider of technology and data enabled solutions to homebuyers, home sellers, real estate professionals and companies engaged in the origination and / or servicing of mortgage loans. Solutionstar intends to transform the home buying experience through the utilization of a next generation real estate exchange and the delivery of high quality residential real estate services. More information about Solutionstar can be found at www.solutionstar.com.
Based in Lewisville, Texas, Nationstar earns fees through the delivery of quality servicing, origination and transaction based services related principally to single-family residences throughout the United States. Additional corporate information is available on the investors tab at www.nationstarmtg.com.
Founded in 2009 on a commitment to delivering an industry-changing combination of centralized product fulfillment, faster turnaround of title, escrow and default services, and breakthrough technology solutions, Title365 delivers superior value while measurably improving the client’s business performance. Title365 serves residential real estate brokers, mortgage and financial institutions, asset managers and independent escrow agents. Title365 is headquartered in Newport Beach, California, and has over 400 employees. For additional information, please visit Title365’s website at www.title365.com.
Any statements in this release that are not historical or current facts are forward-looking statements. These forward-looking statements include, but are not limited to, without limitation, statements concerning the expected closing date for the transaction and the conducting of operations under the Title365 and X1 brands. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performances or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward statements. Certain of these risks and uncertainties are described in the “Risk Factors” section of Nationstar’s most recent annual report and other required documents as filed with the SEC which are available at the SEC’s website at http://www.sec.gov. Nationstar undertakes no obligation to publicly update or revise any forward-looking statements or any other financial information contained herein, and the statements made in this press release are current as of the date of this release only.