Cendant Settlement Services Group to Acquire Prominent Title Companies Based in Texas
|November 3, 2005|
MOUNT LAUREL, N.J., and HOUSTON, -- Cendant Settlement Services Group (CSSG), a subsidiary of Cendant Corporation (NYSE: CD), today announced that it has signed a definitive stock purchase agreement with owner Herbert L. Williams to acquire American Title Company of Houston, Texas American Title Company, Title Resources Guaranty Company and their related title companies based in Texas. Subject to state insurance regulatory approvals and other customary closing conditions, the transactions are expected to close within 60 to 90 days. The terms of the transaction were not disclosed, and it is not expected to have a material impact on the financial results of either Cendant or its Real Estate Services Division.
These acquisitions establish CSSG's entrance into the Texas market with a direct title operation and an in-state footprint highlighted by a large presence in Houston and Austin. Texas American Title Company is the largest independent title agency in Texas. Today's announcement also marks CSSG's initial venture as sole owner and operator of a title insurance underwriting business, Dallas-based Title Resources Guaranty Company.
"Today's acquisition is a complementary addition to our real estate services value circle," said Richard A. Smith, chairman and CEO of the Cendant Real Estate Services Division. "These title entities are located in local markets where they already have a leading position as a service provider for independent residential real estate brokerages. They are also well positioned to serve both our existing company-owned residential real estate brokerage offices and our franchise affiliates' independently owned offices in the future."
"We are excited about entering the Texas market in such a significant manner, especially with such a well-established and highly respected group of companies," said Donald J. Casey, president and CEO of Cendant Settlement Services Group. "This network of companies has thrived under the leadership and direction of Herb Williams and his respective management teams. We look forward to the continued growth of these companies in their markets and the creation of more jobs in Texas."
Williams and his management team will remain in their leadership roles in the acquired businesses, which will also retain their local operating company names.
"Having our title agency, processing and underwriter businesses become part of Cendant Settlement Services Group was the best way for me to personally ensure their continued success and growth, all while maintaining the cohesiveness of our existing business units and teams," said Herbert L. Williams.
"Through our collective successes, our title companies have earned this opportunity to move from a large regional player to becoming part of one of the nation's leading settlement services companies, one whose parent company is the world's leading real estate services organization."
The acquired title insurance agency businesses operate as American Title Company of Houston, Texas American Title Company, Texas American Title Company of Austin, South-Land Title Company, South-Land Title Company of Montgomery County and South-Land of Fort Bend. These companies have provided title and closing services to Cendant Mobility for more than 15 years. Collectively, they serve as one of the nation's eight regional closing centers for Cendant Mobility, which is the world's leading relocation services provider to corporate, government and affinity clients.
Source: Cendant Settlement Services Group