Doma Holdings, Inc. (NYSE: DOMA), a leading force for innovation
in the real estate industry, today announced that it has entered
into a definitive agreement and plan of merger (the “transaction”)
with Title Resources Group (“TRG”), one of the nation’s leading
title insurance underwriters, subject to stockholder and regulatory
approvals. In the transaction, TRG would acquire all of the
outstanding shares of Doma for $6.29 per share of common stock in
an all-cash transaction, an approximate premium of 43.0% over
Doma’s closing share price on March 27, 2024, and an approximate
33.9% premium over the trailing 30-day volume weighted average
closing price ending March 27, 2024.
After the close of the transaction, Doma’s underwriting
division, Doma Title Insurance, Inc., and its technology division,
expected to be renamed Doma Technology LLC (“Doma TechCo”), are
expected to operate as subsidiaries of TRG with Doma TechCo
operating on a separately-capitalized basis. Hudson Structured
Capital Management Ltd. (conducting its insurance business as HSCM
Bermuda or “HSCM”) would maintain an investment in Doma through
Doma TechCo. Doma TechCo would continue to have access to
underwriting services and continued technology deployment for Doma
Title Insurance, Inc.
“Today’s announcement is a win for Doma’s stockholders and for
both companies’ employees and customers,” said Max Simkoff, Doma
CEO. “This transaction is an important step in the growth and
evolution of Doma, further strengthening us as we deploy our
market-tested technology for large mortgage market
participants.”
“We look forward to partnering with the Doma team and providing
excellent underwriting services to Doma’s many strong agents,”
Scott McCall, president and CEO of TRG, said.
Transaction Approvals and Timing
The transaction, which was unanimously approved by Doma’s Board
of Directors, acting on the unanimous recommendation of a special
committee of the Board of Directors comprised entirely of
independent directors, is expected to close in the second half of
2024, subject to certain closing conditions, including approval by
the holders of a majority of Doma’s common stock that are not
affiliated with the Lennar Stockholders (as defined below) and
certain other persons, and certain insurance regulatory approvals.
The transaction is not subject to a financing condition, though is
conditioned on the completion of certain specified transactions as
contemplated by the merger agreement for the transaction (the
“merger agreement”), an investment by Lennar into TRG and the
consummation of certain arrangements with HSCM.
LENX ST Investor, LLC and Len FW Investor, LLC (“Lennar” and
together with LENX ST Investor, LLC, the “Lennar Stockholders”),
representing approximately 25% of the voting power of Doma’s common
stock, have signed a voting agreement in support of the
transaction, agreeing to vote their shares of Doma’s common stock
in favor of the merger agreement and the transaction.
Under the terms of the merger agreement, Doma may solicit
alternative acquisition proposals from third parties during a
50-day “go-shop” period following the date of execution of the
merger agreement. The Doma Board of Directors will have the right
to terminate the merger agreement to enter into a superior proposal
subject to the terms and conditions of the merger agreement and the
payment of a break-up fee. There can be no assurances that the
“go-shop” will result in a superior proposal. Doma does not intend
to disclose developments related to the solicitation process unless
it determines such disclosure is appropriate or is otherwise
required.
Upon closing of the transaction, Doma will no longer be traded
or listed on any public securities exchange.
For further information regarding all terms and conditions
contained in the definitive merger agreement, please see Doma’s
Current Report on Form 8-K, which will be filed in connection with
this transaction.
Advisors
Houlihan Lokey Capital, Inc. is acting as financial advisor to
the special committee of the Doma Board of Directors and Latham
& Watkins is acting as legal counsel for the special committee
of the Doma Board of Directors. Davis Polk & Wardwell LLP is
acting as Doma’s legal counsel and Mayer Brown LLP is acting as
Doma’s insurance regulatory counsel. Willkie Farr & Gallagher
LLP is acting as legal counsel to TRG. Morrison Foerster LLP is
acting as legal counsel to the Lennar Stockholders.
About Doma Holdings, Inc.
Doma is a real estate technology company that is innovating a
century-old industry by building an instant and frictionless home
closing experience for buyers and sellers. Doma uses proprietary
machine intelligence technology and deep human expertise to create
a vastly more simple and affordable experience for everyone
involved in a residential real estate transaction, including
current and prospective homeowners, mortgage lenders, title agents,
and real estate professionals. With Doma, what used to take days
can now be done in minutes, replacing an arcane and cumbersome
process with a digital experience designed for today’s world. To
learn more visit doma.com.
About Title Resources Group (TRG)
Title Resources Group—the underwriter built for the real estate
industry—is one of the nation’s largest title insurance
underwriters, according to the American Land Title Association’s
2023 market share data. TRG serves title insurance agents in 38
states and the District of Columbia. Since its inception, in 1984
the company has consistently operated profitably without a net
operating loss in any fiscal year. With a mission to provide
knowledgeable and responsive underwriting solutions, TRG is
dedicated to growing lifelong relationships and maintaining quality
through integrity and financial stability. For more information,
please visit www.TRGUW.com.
Important Information and Where to Find It
This communication is being made in respect of the proposed
transaction involving Doma and affiliates of TRG. A stockholder
meeting will be announced soon to obtain stockholder approval in
connection with the proposed transaction. Doma expects to file with
the Securities and Exchange Commission (the “SEC”) a proxy
statement and other relevant documents in connection with the
proposed transaction. The definitive proxy statement will be sent
or given to the stockholders of Doma and will contain important
information about the proposed transaction and related matters.
Doma, certain of its affiliates and certain affiliates of TRG
intend to jointly file a transaction statement on Schedule 13E-3
(the “Schedule 13E-3”) with the SEC. INVESTORS OF DOMA ARE URGED TO
READ THE DEFINITIVE PROXY STATEMENT, THE SCHEDULE 13E-3 AND OTHER
RELEVANT MATERIALS CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME
AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE
PROPOSED TRANSACTION AND RELATED MATTERS. Investors may obtain a
free copy of these materials (when they are available) and other
documents filed by Doma with the SEC at the SEC’s website at
www.sec.gov, at Doma’s website at
https://investor.doma.com/financial-information/sec-filings.
Participants in the Solicitation
Doma and certain of its directors, executive officers and other
members of management and employees may be deemed to be
participants in the solicitation of proxies from its stockholders
in connection with the proposed transaction. Information regarding
the persons who may, under the rules of the SEC, be considered to
be participants in the solicitation of Doma’s stockholders in
connection with the proposed transaction will be set forth in
Doma’s definitive proxy statement for its stockholder meeting.
Additional information regarding these individuals and any direct
or indirect interests they may have in the proposed transaction
will be set forth in the definitive proxy statement when and if it
is filed with the SEC in connection with the proposed
transaction.
Forward-Looking Statements
This communication contains “forward-looking statements” within
the meaning of federal securities laws, including Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These forward-looking
statements are based on Doma’s current expectations and projections
about future events, including the expected date of closing of the
proposed transaction and the potential benefits thereof, its
business and industry, management’s beliefs and certain assumptions
made by Doma and TRG, all of which are subject to change. All
statements, other than statements of present or historical fact
included in this communication, about our plans, strategies and
prospects, both business and financial, are forward-looking
statements. Any statements that refer to projections, forecasts or
other characterizations of future events or circumstances,
including any underlying assumptions, are forward-looking
statements. In some cases, you can identify forward-looking
statements by terminology such as “may,” “should,” “could,”
“would,” “expect,” “plan,” “anticipate,” “intend,” “believe,”
“estimate,” “continue,” “goal,” “project” or the negative of such
terms or other similar expressions. Moreover, the absence of these
words does not mean that a statement is not forward-looking. The
forward-looking statements in this communication include statements
regarding the transaction and the ability to consummate the
transaction. Forward-looking statements speak only as of the date
they are made, and Doma undertakes no obligation to update any of
them publicly in light of new information or future events. Actual
results could differ materially from those contained in any
forward-looking statement as a result of various factors,
including, without limitation: (i) the completion of the proposed
transaction on anticipated terms and timing, including obtaining
required stockholder and regulatory approvals, anticipated tax
treatment, unforeseen liabilities, future capital expenditures,
revenues, expenses, earnings, synergies, economic performance,
indebtedness, financial condition, losses, future prospects,
business and management strategies for the management, expansion
and growth of Doma’s business and other conditions to the
completion of the transaction; (ii) conditions to the closing of
the transaction may not be satisfied; (iii) the transaction may
involve unexpected costs, liabilities or delays; (iv) the outcome
of any legal proceedings related to the transaction; (v) the
occurrence of any event, change, or other circumstance or condition
that could give rise to the termination of the merger agreement,
including in circumstances requiring Doma to pay a termination fee;
(vi) Doma’s ability to implement its business strategy; (vii)
significant transaction costs associated with the proposed
transaction; (viii) potential litigation relating to the proposed
transaction; (ix) the risk that disruptions from the proposed
transaction will harm Doma’s business, including current plans and
operations; (x) the ability of Doma to retain and hire key
personnel; (xi) potential adverse reactions or changes to business
relationships resulting from the announcement or completion of the
proposed transaction; (xii) legislative, regulatory and economic
developments affecting Doma’s business; (xiii) general economic,
technology, residential housing and market developments and
conditions, including federal monetary policy, interest rates,
inflation, home price fluctuations, housing inventory, labor
shortages and supply chain issues; (xiv) the evolving legal,
regulatory and tax regimes under which Doma operates; (xv)
potential business uncertainty, including changes to existing
business relationships, during the pendency of the merger that
could affect Doma’s financial performance; (xvi) restrictions
during the pendency of the proposed transaction that may impact
Doma’s ability to pursue certain business opportunities or
strategic transactions; and (xvii) unpredictability and severity of
catastrophic events, including, but not limited to, acts of
terrorism or outbreak of war or hostilities, as well as Doma’s
response to any of the aforementioned factors. While the list of
factors presented here is considered representative, such list
should not be considered to be a complete statement of all
potential risks and uncertainties. Unlisted factors may present
significant additional obstacles to the realization of
forward-looking statements. Consequences of material differences in
results as compared with those anticipated in the forward-looking
statements could include, among other things, business disruption,
operational problems, financial loss, legal liability to third
parties and similar risks, any of which could have a material
adverse effect on Doma’s financial condition, results of
operations, or liquidity. Doma does not assume any obligation to
publicly provide revisions or updates to any forward-looking
statements, whether as a result of new information, future
developments or otherwise, should circumstances change, except as
otherwise required by securities and other applicable laws.
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version on businesswire.com: https://www.businesswire.com/news/home/20240328798413/en/
Investor Contact: Dave DeHorn | Chief Strategy Officer
and Interim Head of Investor Relations for Doma | ir@doma.com
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