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PE Firms to Jump into CoreLogic Fray

Private equity will likely be very, very interested in CoreLogic, the data-and-analytics company.

Yesterday, CoreLogic said it had hired Greenhill to help it explore a possible sale or merger. News of the announcement cause CoreLogic shares to rise nearly 26% to $11.05 in afternoon trading Tuesday. The company currently has a $1.2 billion market cap.

I’m hearing that that the larger buyout shops, and the list includes KKR, TPG, the Blackstone Group, TA Associates, Advent, Bain as well as Hellman and Friedman, will likely be looking at CoreLogic, according to a PE source. Among strategics, Fidelity National Information Systems is a possible bidder.

CoreLogic, unless it’s damaged goods, could possibly sell for a “low to mid teens multiple,” the source says.

Santa Ana, Calif.-based CoreLogic split from First American Corp. in June 2010 when it became an independent public company. The company provides data to the real estate and mortgage sectors. Earnings, recently, haven’t been too good and CoreLogic shares tumbled to a near three-year low earlier this month.

CoreLogic’s income dropped 5% to $31.7 million for the quarter ended June 30, according to 10Q filed June 30. The company is heavily leveraged with $909.7 million in long-term debt as of June 30. CoreLogic’s EBITDA also plunged nearly 40% to $36.2 million.