Claims tech vendor faces possible hostile takeover

A hostile takeover of Canadian claims software vendor Symbility’s corporate parent could be in the works.

CoreLogic Inc. announced last week its board of directors is rejecting a takeover offer from Senator Investment Group LP and Cannae Holdings Inc., which own about 15% of CoreLogic stock.

Irvine, Calif.-based CoreLogic is publicly-traded. In 2018, CoreLogic bought the shares of Symbility Solutions Inc. that CoreLogic did not already own for about US$160 million.

Symbility, which has a Toronto office, makes estimating software as well as cloud-based claims workflow products for the property and casualty insurance industry. Symbility products include Claims Connect, which is intended to let estimators, staff adjusters, building contractors and clients get access to claims data.

CoreLogic announced June 26 it received an unsolicited acquisition proposal from Senator and Cannae. After reviewing the proposal, CoreLogic said on July 7 that’s its board is opposed to the proposed deal. The same day, Cannae said it might call a special meeting this month of CoreLogic shareholders in an effort to replace CoreLogic’s board of directors.

Las Vegas-based Cannae has majority and minority equity investments in various companies including in business data provider The Dun & Bradstreet Corporation and payroll software maker Ceridian HCM Holding, Inc. among others.

Initially, CoreLogic said June 26 that it would “carefully review” the proposal from Cannae and Senator “with the assistance of financial and legal advisors to determine the course of action it believes is in the best interests of” CoreLogic and its shareholders.

One reason CoreLogic’s board cited in rejecting the $65-per-share offer is CoreLogic’s contention that the offer under-values CoreLogic. Before the offer was made, CoreLogic was trading at just over US$50 a share. CoreLogic was trading July 13 at US$67 a share.

For its part, Cannae said on July 7 that it hopes “to engage constructively” with CoreLogic but is threatening to call a special meeting of shareholders to replace the CoreLogic’s board as early as July 28th.

CoreLogic provides risk data on properties to property and casualty insurers. In 2018 it owned 28% of Symbility and closed a deal in December, 2018 to acquire the other 72%.

Symbility products include Desk Adjuster, which is designed to help internal staff adjusters deal with small losses so insurers can cut down on outsourcing costs and close claims more quickly.

In addition to its Toronto headquarters, Symbility also has offices in the United States, Britain, Germany, Australia New Zealand and South Africa.

Feature image via iStock.com/erdikocak