Fidelity National, Thomas H Lee in talks to buy LPS for $2.9 bn

Fidelity National Financial Inc, a Fortune 500 company, and private equity firm Thomas H Lee Partners are in advanced talks to buy mortgage service provider Lender Processing Services Inc (LPS) for around $2.9 billion, the Wall Street Journal today reported, citing people familiar with the matter.

A completed deal would make LPS once again a unit of Fidelity National Financial after being spun off in 2008.

On completion of the deal, LPS would become a subsidiary of Fidelity National Financial and Thomas H Lee would hold a 19.9-per cent stake in LPS.

The buyers are planning to pay with a mix of cash and Fidelity National Financial stock, a deal which would value LPS around $33 per share.

Florida-based LPS is a provider of mortgage and consumer loan processing services, mortgage settlement services, default solutions and loan performance analytics, as well as solutions for the real estate industry, capital markets investors and government offices. 

Having been in the business since nearly half a century when it first began offering computing and statistical services, LPS clients include most of the country's top 50 banks.

The company employs around 8,000 people and has a market value of $2.5 billion.

Fidelity National is the US largest provider of commercial and residential mortgage and diversified services. It generates approximately $7billion in annual revenue from its title and real estate related operations.