First American Makes Move Toward Spin-off
|March 18, 2010|
First American Corp. made two significant moves as it drives toward spinning its Financial Services Group and Information Services Group into a separate entities.
First American announced the leadership team of the Information Services Group and also plans to acquire the minority ownership of First American CoreLogic. The Financial Group includes First American’s title division. The company targets Jun 1 as the spin-off date. First American previously held an 82 percent ownership in the company. First American CoreLogic is a key component of the company's Information Solutions Group, which will be separated from the company's Financial Services Group upon the completion of the previously announced spin-off, targeted for June 1, 2010.
"We believe the integration of First American CoreLogic with the other operational business units acquired in the fourth quarter of 2009 through the buy-in of First Advantage Corporation will serve to simplify the organization as the Information Solutions Group prepares to become an independent, public company," Kennedy said. "This acquisition will result in an extra measure of flexibility and operational efficiency that will be beneficial as we develop our next-generation analytic capabilities for the financial services and capital markets industries."
Meanwhile, Anand K. Nallathambi was named chief executive officer of the Information Services Group, while Buddy Piszel was appointed chief financial officer.
Nallathambi, who was appointed president and chief operating officer of the Information Solutions Group in December 2009, will continue to serve in those capacities. Piszel will continue to serve as the parent company's chief financial officer. The company's Financial Services Group will commence a search for Piszel's replacement as its chief financial officer.
"I am pleased to announce the completion of our leadership team for the Information Solutions Group—an important milestone as we continue our progress toward the targeted June 1, 2010, spin-off," said Parker S. Kennedy, chairman and chief executive officer of The First American Corporation. "The depth of their combined experience as public-company executives will ensure the successful debut of this exciting, new company."
Nallathambi, 48, previously served as chief executive officer and president of First Advantage Corporation, which, until November 2009, was a majority-owned public subsidiary of the company and a business segment within the Information Solutions Group. Nallathambi, who began his First American career in 1995, served with First Advantage since 2005.
Piszel, 55, joined the company as chief financial officer in January 2009. Prior to that, he was executive vice president and chief financial officer for Freddie Mac. His background also includes two years as chief financial officer for Health Net, Inc. and more than a decade at Prudential Financial, Inc., where he held numerous senior executive positions including senior vice president and corporate controller, chief financial officer of the individual life insurance business and chief financial officer of the asset management and retirement business. During his tenure at Prudential, he also played a leading role in transforming Prudential from a private company to a public, SEC-registered company.
Nallathambi received his bachelor's degree in economics from Loyola University in Madras, India. He earned a master's degree in finance and marketing from California Lutheran University and has professional designations in systems analysis and international business from the University of California at Los Angeles. Nallathambi also serves on the board of directors of the Consumer Data Industry Association, an international trade association that represents consumer information companies.
Piszel, who earned a bachelor's degree in economics from Rutgers University and an M.B.A. from Golden Gate University, also serves on the board of directors of RehabCare Group, Inc. and is chairman of that company's audit committee.