Flexpoint Ford and Vestar Capital Partners has agreed to acquire Lereta Inc, a provider of real estate tax and flood services for mortgage servicers. No financial terms were disclosed. The deal is expected to close within 30 days.
Correction: An earlier version of this report misspelled Vestar Capital. The report has been updated.
COVINA, Calif., July 6, 2021 /PRNewswire/ — LERETA, LLC (“LERETA” or “the Company”), a leading national provider of real estate tax and flood services for mortgage servicers, and its equity holders, including funds managed by Tarsadia Investments, LLC, announced today that they have reached an agreement to sell the Company to private equity firms Flexpoint Ford and Vestar Capital Partners. The transaction is expected to close within 30 days.
LERETA’s chief executive officer, John Walsh, and the current senior management team will continue to lead the Company.
LERETA serves more than 4,000 customers nationwide. The Company processes more than $17 billion in tax payments annually and monitors more than 25 million loans for flood determinations. Over the past two years, the Company has met 99.9% of its service level agreements for all customers.
Commenting on the transaction, Walsh said, “Flexpoint Ford and Vestar Capital Partners represent an ideal partnership for LERETA. The combination of these two well-regarded firms provides deep experience in financial services and a wealth of knowledge around scaling and enhancing technology. LERETA has distinguished itself by providing a high level of customer service in our markets. As a result, we’ve been successful in adding new customers and building market share. This transaction will enable us to accelerate our already strong growth, step up our investments in technology and scale our operations to address the changing needs of the mortgage servicing industry.”
“We found that LERETA’s customers really valued its flexibility, attentiveness and white-glove customer service. The Company’s planned increase in technology investments will continue to further enhance its customers’ experience,” said Steve Begleiter, Managing Director at Flexpoint Ford. “We are thrilled to partner with John, the LERETA team and Vestar in the next chapter of LERETA’s success. The Company’s focus on providing best-in-class service and the planned investment in its technology positions the business for an exciting future,” added Arjun Thimmaya, Managing Director, Flexpoint Ford.
“LERETA’s robust systems and service-oriented, client-first approach have enabled the Company to deliver high-quality, regulatory-compliant solutions for its customers’ most complex needs for over 35 years,” said Nikhil Bhat, Managing Director and Co-Head of Business & Technology Services at Vestar Capital Partners. “We are excited to support management as they accelerate the Company’s technology investments, further enhancing the speed, accuracy, and reliability of LERETA’s products while facilitating seamless integration with customers’ mission-critical workflows.”
Financial details of the transaction were not disclosed.
Rothschild & Co served as the lead financial advisor to LERETA and its board of managers, and Kirkland & Ellis, LLP served as legal counsel to LERETA. American Discovery Capital also served as a financial advisor to LERETA and its board of managers. Raymond James served as financial advisor to Flexpoint Ford and Vestar Capital Partners. Wachtell, Lipton, Rosen & Katz served as legal counsel to Flexpoint Ford. Kirkland & Ellis, LLP served as legal counsel to Vestar Capital Partners.
Since 1986, LERETA has provided the mortgage and insurance industries the fastest, most accurate and complete access to property tax data and flood hazard status information across the U.S. LERETA is committed to giving customers extraordinary service and cost-effective property tax and flood solutions. LERETA’s services are designed to increase efficiency, reduce penalties and liabilities and improve processes for mortgage originators and servicers. LERETA’s dedicated teams of real estate tax and flood professionals along with LERETA’s experienced management team allow the company to lead the industry in service and technology.