Fidelity National buying Lender Processing

Tuesday, May 28th, 2013 | Finance News

JACKSONVILLE, Fla. (AP) — Fidelity National Financial Inc. is buying Lender Processing Services Inc. for about $2.82 billion in order to broaden and diversify its business.

Lender Processing is a Jacksonville, Fla.-based technology company that services the mortgage and real estate industries.

Fidelity National will pay $33.25 per share, a 1 percent premium to Lender Processing's Friday closing price of $32.89. The companies put the cash-and-stock deal's total equity value at approximately $2.9 billion.

Lender Processing currently has about 84.9 million outstanding shares, according to FactSet.

The deal allows it to seek alternative bids until July 7.

The transaction is expected to close in the fourth quarter. It still needs approval from both companies' shareholders.

Shares of Fidelity National rose 2.7 percent in premarket trading on Tuesday. Lender Processing's stock gained 2.4 percent before the market open.