First American Financial Corp., one of the largest title-insurance companies in the country, has reached a deal to acquire financial-technology company Docutech for $350 million.
Docutech, founded in 1991, provides digital documentation, e-signature, e-closing and fulfillment services to a broad swath of the mortgage industry. Its clients include more than 175 lenders — including Quicken Loans, the nation’s largest mortgage lender — as well as data companies such as Black Knight, CoreLogic and Ellie Mae.
Financial terms of the all-cash purchase were revealed in First American’s 2019 earnings report, which was released on the same day as the acquisition announcement. The Santa Ana, California-based company reported total revenue of $6.2 billion last year, up 8% compared to 2018.
First American anticipates this deal to grow its 2020 earnings even further. The move expands First American’s ability to “provide lender customers with end-to-end digital mortgage and settlement services,” allowing it to further embrace a fully digital mortgage process.
“The acquisition of Docutech reflects our steadfast commitment to invest in and grow our core business,” First American CEO Dennis J. Gilmore said. “Moreover, it demonstrates our dedication to improving the homebuying experience for consumers and driving the digital transformation of the real estate settlement process. … Together, we will accelerate the evolution of real estate closings.”
First American also expects the addition to “deepen the company’s relationships” with the many “industry players” among Docutech’s roster of clients. Docutech’s current leadership, including CEO and President Amy Brandt, will stay on board to oversee operations.
“Joining the First American family strengthens our ability to provide products and services that help lenders offer a more digital mortgage experience and adapt to today’s changing business landscape,” Brandt said. “The Docutech team will now have enhanced access to First American’s industry-leading property data and its other industry-leading products and services, further enhancing the quality, accuracy and speed of our services.”
The deal is expected to close by the end of March.