Stewart Information Services Corporation (NYSE:STC) has recently announced its intent to acquire Mortgage Contracting Services (MCS), a property preservation services provider. The acquisition, with a purchase price of $330 million, is expected to be funded with available company resources and is set to be immediately accretive.
This move is aimed at strengthening Stewart's real estate services portfolio and expanding its offerings to lender and servicer customers. The acquisition will see Stewart acquiring all the operations and technology supporting mortgage servicers and lenders in their property preservation efforts.
Fred Eppinger, Stewart CEO, emphasized the company's commitment to enhancing its lender services and introducing its products and services to a broader audience of customers. Additionally, Beth Fowler, President of Stewart Lender Services, expressed enthusiasm about the acquisition, highlighting the addition of a complementary and core capability critical to the mortgage ecosystem.
The transaction is anticipated to close before the end of the year, pending customary closing conditions and the expiration or termination of the waiting period under the Hart-Scott-Rodino (HSR) Antitrust Improvements Act of 1976.
Stewart Information Services Corporation is a global real estate services company, providing products and services through its direct operations, network of Stewart Trusted Providers™, and family of companies. The company offers residential and commercial title insurance, closing and settlement services, and specialized offerings for the mortgage industry, aiming to provide comprehensive services and solutions for any real estate transaction.
This acquisition marks a strategic move for Stewart in expanding its real estate services and further solidifying its position as a leader in the industry. As a result of these announcements, the company's shares have moved 3.1% on the market, and are now trading at a price of $71.58. For more information, read the company's full 8-K submission here.
