DOW JONES NEWSWIRES
First Advantage Corp. (FADV) has agreed to back an increased
offer from 80%-owner First American Corp. (FAF) to purchase the
remaining stake in the credit-information provider.
Independent directors are backing First American's bid of 0.58
share for each share of First Advantage. That values First
Advantage at $18.86, a 1% premium to Wednesday's closing price.
First American in June had offered 0.5375 share, an offer First
Advantage was reviewing the past several months.
The new offer values First Advantage at about $1.1 billion.
First American and other title insurers have been roiled by the
housing-market downturn. The industry gets much of its business
through mortgage originations. The takeover is part of First
American's efforts to streamline the organization before it
separates its information solutions and financial-services
businesses.
First Advantage shares are up 32% this year amid the takeover
offer. The company has been reported some decline in its results
the past several quarters as credit checks remain weak amid the
tumble in auto sales. But increased mortgage refinancings have been
easing some of those woes.
-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354;
kevin.kingsbury@dowjones.com