The First American Corporation Acquires Offutt Systems, Inc.
|August 8, 2006|
SANTA ANA, Calif., The First American Corporation (NYSE: FAF) has acquired privately-held Offutt Systems, Inc. (OSI), a Greensboro, N.C.-based provider of multiple listing service (MLS) solutions. OSI will be operated through First American MLS Solutions, Inc., a division of First American Residential Group and the leading provider of MLS technology and support services to real estate professionals in North America. Terms of the transaction, which closed Aug. 1, 2006, were not disclosed.
Established in 1971, OSI has grown to offer its services to more than 60 MLS organizations across the country. Its core product, InnoVia, is a proven technology that is widely regarded as the best small- to medium-market MLS solution by many real estate professionals. Recently Offutt has also been successful in securing business from larger MLS clients, further proving the strength of its platform. The highly reliable and scalable technology has been favored for years by Realtor® boards and associations seeking a customized MLS solution that can be competitively priced within smaller boards while effectively competing for medium and large MLS clients.
"This acquisition extends our reach into a market segment we haven't traditionally served through our TEMPO(TM) and MLXchange MLS products, and is consistent with our strategy of providing unparalleled choice for real estate professionals seeking integrated technology solutions in a highly fragmented market," said Stephen C. Roney, president and chief executive officer of First American Residential Group. "OSI has been a successful and profitable operation for many years, and we intend to use First American's extensive resources to further grow and enhance this business, while delivering high-quality products and the same attentive service that OSI's loyal customers have come to know and expect."
"First American is a perfect fit for us," said OSI president Scott F. Quinn. "We can now offer a much more innovative solution-integrated transaction management, association management and client management services -- while still remaining cost-effective for our current and future customers."
"As some consultants have noted, our strategy for integrating new companies and products has been very successful-our high scores in recent customer surveys by Clareity Consulting and the WAV Group are the best evidence of this," said Bryan Foreman, president of First American MLS Solutions. "OSI customers can look forward to added valuable enhancements to their MLS system and even higher levels of customer service."
First American will continue to run OSI operations under the direction of its current management team from the company's main office location in Greensboro, N.C.
"For 35 years, we've provided the real estate industry with the technologies, services and solutions needed to succeed in an ever-changing market," said Robert L. Offutt, chairman and founder of OSI. "I'm tremendously proud of the business we've built and pleased to have found in First American a company equally committed to customer service, innovation and integrity."
The addition of OSI, which serves approximately 80,000 users, increases the total number of real estate professionals now served by First American MLS technology to just over 600,000.
Source: First American Residential Group