The CoreLogic Takeover Battle
CoreLogic Reevaluates its Options
CoreLogic (CLGX) is a firm that provides data about the housing market for real-estate brokers and financial companies. Though its services are widely used, it has been a pretty low-profile company until recently. But demand is booming for housing and for CoreLogic’s services. As a result, the company is the focus of a takeover war.
Earlier this month, CoreLogic agreed to accept an all-cash $6 billion takeover bid from two private equity companies, Stone Point Capital LLC and Insight Partners. CoreLogic chose this offer over an all-stock bid from CoStar Group (CSGP). But CoStar then raised its offer, and CoreLogic is now reevaluating its options.
Investor Enthusiasm for Businesses Linked to the Housing Market
The battle for CoreLogic illustrates how investors are eager to pile into companies linked to the housing market. In 2020, home sales reached their highest level in 14 years. This was a result of low interest rates and demand for more space to work and social distance at home.
This trend has boosted revenue for brokerage companies like Realogy Holdings (RLGY) and Toll Brothers (TOL). Residential real estate data providers like CoreLogic have also been riding the housing market wave. The company’s stock price has more than doubled since the start of 2020.
Future Trends in Home Buying
Much of the recent housing demand has been fueled by millennials and first-time home buyers. This demographic wants technology and data-driven tools to help them buy homes. CoreLogic’s data has been important during this recent boom and will likely become even more in-demand as future generations buy homes.
CoreLogic is currently evaluating the bids from its two potential buyers. A decision could come as early as this week.
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