Subsidiary of Nationstar Mortgage Acquires Title365
November 25, 2014
Solutionstar Holdings LLC, an indirect wholly-owned subsidiary of Nationstar Mortgage Holdings, entered into a definitive agreement to acquire Title365.
Pending approval, the transaction is anticipated to close in January 2015 for $36 million in cash with additional consideration.
According to a release, Title365 will enable Solutionstar to expand its purchase title services and further diversify its revenue streams through access to a significant third-party customer base. It is expected that the acquisition will generate financial and operational synergies including the ability to utilize Title365’s licenses to expand into new geographic markets, particularly in California, resulting in both cost savings as well as new revenue opportunities. Title365, which is headquartered in Newport Beach, Calif., has over 400 employees. Lewisville, Texas-based Nationstar offers servicing, origination and transaction-based real estate services. It has a servicing portfolio in excess of $375 billion.
“We continue to believe in the power of technology to make buying and selling a home more transparent, convenient and affordable, and today’s announcement represents an important next step in Solutionstar’s growth as a premier real estate technology company,” said Nationstar CEO Jay Bray. “Acquiring Title365 reflects our ongoing commitment to pursue technology-driven fee-based services companies that broaden our product offerings and position us as a real estate technology innovator and the preferred provider of real estate services to financial institutions, home owners and real estate agents.”
Solutionstar said Title365’s platform will help it deliver an integrated online real estate solution. Solutionstar also hopes to capitalize on Title365's growth prospects by expanding into new markets, leveraging its advanced technology platform to attract new third-party clients and offering new products. Title365 expects to generate approximately $63 million of revenue in 2014, of which approximately 57 percent is purchase money title business.
This acquisition comes on the heels of Solutionstar’s purchase of Real Estate Digital (RED), a real estate data aggregation company that provides online marketing, data, transaction management and digital media solutions. Earlier this month, the company announced hiring noted technology executive Kal Raman as its CEO. For more than two decades, Raman has experience with consumer-focused technology and retail companies, including Groupon, eBay and Amazon.
“When I was hired to take the helm at Solutionstar, we promised to continue to make significant, sustained investments in innovation and expand our products and services to elevate the company as a national leader in real estate technology,” Raman said. “Acquiring RED was an important step in that evolution, and acquiring Title365 underscores Solutionstar’s commitment to leverage our technological expertise to deliver comprehensive, end-to-end online services for homebuyers, home sellers and real estate professionals.”
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