Stewart Information Services Corporation STC acquired 57 title offices in the states of Arizona, Colorado and Nevada from ET Investments for $105 million. The acquisition is in sync with the acquirer’s strategy to improve scale and competitive position in priority markets where it has been underrepresented. Shares of the company gained 5.9% in yesterday’s trading session, reflecting investor optimism.
These title offices have generated more than $20 million in pre-tax income. Stewart Information Services expects the transaction to be accretive immediately to recent equity raise of more than $100 million. The acquisition will help boost the company’s presence in western United States.
This Zacks Rank #1 (Strong Buy) global real estate services company remains focused on growing its core Title business and thus has a sizable merger and acquisition pipeline. The acquisition of United States Appraisals in June 2020 adds scales to existing business as well as provides cross-selling opportunities