CoreLogic, the property data and analytics company, is moving ahead with its pledge to diversify its business, inking a deal to acquire the stake in Symbility Solutions, an insurance software maker, it doesn’t already own.
Recently Irvine, California-based CoreLogic said it would pay $0.47 a share in cash for the remaining stake in the SaaS company. Prior to the deal, CoreLogic owned about 28% of Symbility. It marks a 20% premium to Symbility’s share price based on the 20-day volume weighted average trading price and a 26% premium to the closing price of the stock on October 19, 2018.
Symbility, which came on the scenes in 2004, provides businesses with a cloud-based subscription, property insurance claims workflow platform among other software offerings. “Symbility expands our footprint in property and casualty insurance domestically and in key markets around the globe,” CoreLogic President and Chief Executive Frank Martell said in a statement in announcing the deal. “Further scaling our insurance and international footprint offers the potential for significant non-cyclical growth in line with our long-term goal of sourcing at least 50 percent of our revenues from non-U.S. mortgage.” Symbility is based in Toronto and has offices in the U.S., Canada, the UK, Germany, Netherlands, Australia, and New Zealand.
While Martell said there are a lot of synergies between the two companies, he is most excited about the future opportunities to grow through the launch of new products, services, and workflow tools. The deal is slated to close at the end of 2018.
Symbility Uses Tech To Remove Friction From Claims
The acquisition of Symbility Solutions may prove smart for CoreLogic, given the company has been growing and expanding into new markets and partnerships. Take its announcement in early October for one example. It announced that it along with HOVER, a platform that produces interactive 3D models of any property, were integrating so that adjusters using Symbility’s cloud claims management system can pull in HOVER’s 3D images which include exterior and roof diagrams, photos and exterior measurements. That will enable the adjusters to process claims quickly and more accurately. According to the companies, the integration could reduce the claims processing time by between 25% and 50%, freeing up adjusters to increase the number of claims they can address daily.
It's part of the company’s mission to remove steps in the claiming process by using technology and is one of the reasons CoreLogic was drawn to it. “Our goal has always been to improve our customers' experience by eliminating unnecessary steps in the claims process, helping both carriers and their policyholders resolve claims as quickly as possible," said James R. Swayze, CEO of Symbility Solutions said when announcing the deal with HOVER. "HOVER provides accurate, current, and complete 360-degree view of a property. With this level of detail readily available within the Symbility platform, every carrier and insurance adjuster can ensure a quick and accurate claims process."