CoreLogic announced on Feb. 4 that it is going to be acquired by Stone Point Capital and Insight Partners in a deal valued at $6 billion.
Stone Point Capital and Insight Partners will pay $80 in cash for each outstanding share of the real estate company. This share price reflects a 51% premium to CoreLogic’s (CLGX) share price on June. 25 of last year. The acquisition is expected to close in the second quarter of this year.
Shares of CoreLogic were up by 1.3% and closed at $81.82 on Feb. 4.
President and CEO of CoreLogic, Frank Martell, said, “Stone Point and Insight Partners are highly respected investors who recognize the value and potential of CoreLogic’s digital content, solutions and market-leading platforms that power the housing economy. We look forward to working closely with Stone Point and Insight to build on our record financial and operating performance and accelerate our digital transformation and growth.” (See CoreLogic stock analysis on TipRanks)
Following the acquisition announcement, Stephens analyst John Campbell put his price target of $75 under review and reiterated a Hold rating on the stock. Campbell called the deal “a bit of an odd twist” as larger private equity firms and CoStar Group had been the main companies mentioned in earlier news reports leading up to the acquisition announcement.
The rest of the Street is in line with Campbell’s view as the stock earns a Hold consensus rating. That’s based on 3 analysts suggesting a Hold and 1 analyst recommending a Sell. The average analyst price target of $77.67 implies 5.1% downside potential to current levels.
According to TipRanks’ Similar Stocks comparison tool, CLGX scores an 8 out of 10 on TipRanks’ Smart Score system, behind its peer Black Knight’s score of a “Perfect 10”, indicating that Black Knight stock has a higher likelihood of outperforming the market.