First American Financial Corporation (FAF - Snapshot Report) recently closed the buyout of RedVision Systems, Inc. Post acquisition, RedVision Systems will operate as a business affiliate under the current brand and management of First American’s Data and Mortgage Solutions division.
The completion of the transaction will mark RedVision Systems’ official entry to the First American family of companies. The acquirer, on the other hand, will be able to further expand its industry leading position in title and property data.
Headquartered in New Jersey, RedVision Systems is the largest independent national provider of title and property research. The company helps its clients with title evidence solutions, which include data, technology and managed services pertaining to the procurement and processing of title information. RedVision Systems has made a name for itself through its proprietary technology, which comprises its production platforms – TitleVision and Nova. These platforms provide clients a customizable and scalable solution for title research and production.
RedVision Systems’ data, technology and services will be a valuable addition to First American’s already strong title search and title evidence production. The deal will integrate the acquired company’s nationwide title production platform with the acquirer’s title and property data as well as billions of recorded documents. Thus, the buyout will result in unparalleled quality, coverage and operational flexibility.
RedVision Systems’ data will be leveraged by First American’s Data Trace group for building additional title plants more swiftly and efficiently.
The addition of RedVisions Systems to the inorganic portfolio is a well-thought-out strategic move on First American’s part. The acquisition will help the insurer offer its clients a more sophisticated and effective title and property data services. Moreover, the transaction will allow the company to strengthen its presence in the property and casualty space.
First American has been boosting its inorganic growth profile through various strategic acquisitions. This April, the insurer’s subsidiary, First American Mortgage Solutions, LLC, purchased Forsythe Appraisals, LLC. This acquisition should support First American Mortgage to help lenders and appraisers in the delivery of defect-free mortgage and render robust customer experience.
Acquisitions are a well-accepted strategy for growth among insurers. Recently, Brown & Brown of Connecticut, Inc., a subsidiary of Brown & Brown, Inc. (BRO - Analyst Report) , acquired the assets of Kronholm Insurance Services, Inc. Also, On Aug 15, Arch Capital Group Ltd. (ACGL - Snapshot Report) announced its decision to acquire United Guaranty Corporation and AIG United Guaranty Insurance Limited from the parent company, American International Group, Inc. (AIG - Analyst Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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