In the latest news on the back and forth between CoreLogic and the bidding companies fighting to purchase it, the real estate data, insight, and analytics proptech giant sent a letter to CoStar Group in reply to CoStar’s recent offer to acquire the company.
At the beginning of February, CoreLogic’s Board of Directors approved the offers from Stone Point Capital and Insight Partners of acquiring CoreLogic’s outstanding shares for $80 per share in cash. This is still the current agreement, with the Board of Directors having yet to withdraw or modify the agreement.
CoStar Group has upped its offer to change CoreLogic’s Board’s mind with a bid of $6.9 billion.
In a letter to CoStar as a reply to its updated proposal, Frank Martell, the President, CEO, and COO of CoreLogic explained which agreement CoreLogic is sticking with.
“The Board of Directors of CoreLogic, Inc. (“CoreLogic” or the “Company”) has carefully reviewed the updated terms of your March 1, 2021 proposal, including the submitted merger agreement (collectively, your “Updated Proposal”) and has not concluded that your Updated Proposal is a Superior Proposal as defined in our merger agreement with affiliates of Stone Point Capital and Insight Partners (the “Pending Transaction”). The CoreLogic Board unanimously believes your Updated Proposal requires further improvement with respect to the following key areas: (i) value, (ii) certainty of value, and (iii) certainty of closing in a timely manner.”
Martell then went into detail on those key areas, explaining what CoreLogic is looking for in a buyer and why CoStar has not reached those prerequisites yet. Furthermore, Martell points out CoStar’s shares declining since its latest proposal in February.
“We continue to believe that there is strategic potential in the combination of our two businesses and we request that you reconsider your positions on these important terms.”
Serving as financial advisor to CoreLogic, Evercore, who has also worked with Skadden, Arps, Slate, Meagher & Flom LLP, is serving as CoreLogic’s legal advisor, as well.