Fidelity National Financial ( FNF - Snapshot Report ) closed the acquisition of Digital Insurance Inc. The acquisition agreement was announced by Fidelity on December end 2012.

Subsequent to the acquisition, Digital will function as a wholly owned subsidiary of Fidelity National. However, it will continue to serve its core operations. The deal is expected to help Digital to expand its existing employee benefits market rapidly.

Administering more than 20,000 employer clients and 250 broker partnerships, Digital generates more than $1 billion in annual premiums. It specializes in providing health insurance and benefits management for small and medium sized business (SMB) as well as individuals and families nationwide. Digital is expected to generate nearly $50 million and $70 million in revenue by 2012 and 2013 respectively.

Over the last two years 18 veteran benefits agencies have been acquired by Digital. Digital’s promising operational infrastructure and improved technology have aided the sustaining growth momentum of the acquired agencies. Fidelity in due course will help Digital to augment its merger and acquisition policies which will assist it to become the paramount benefits advisory solutions in the industry.

Fidelity National has a reputation of building successful companies. Being part of such a company, Digital expects to utilize the huge resources of Fidelity to fortify its growth prospects and thereby attain its goal of becoming the leading provider of benefits and insurance throughout the country. We expect Digital’s success and strong organic growth prospect to bolster Fidelity National’s growth portfolio amidst the changes taking place in the industry.

Fidelity National, which provides insurance, mortgage services, restaurant and other diversified services currently holds a Zacks #1 Rank (Strong Buy). Other insurers like First American financial Corp. ( FAF - Snapshot Report ) and Old Republic International Corp. ( ORI - Snapshot Report ) closely compete with the company. First American shares the same Zacks rank while Old Republic holds a Zacks #3 Rank (Hold).