States Title Inc. is acquiring the underwriting operations and retail title business of North American Title Group.
The deal, which is expected to close in January, assuming regulatory approval in California and Arizona is obtained by year end, calls for States Title to acquire NATG's underwriter, North American Title Insurance Co., and a majority position in the retail business of NATG's national title agency, North American Title Co. North American is a wholly-owned subsidiary of homebuilder Lennar.
"By partnering with North American Title, we accelerate our shared vision to build the title company of the future," said Max Simkoff, founder and CEO of State Title. "Buying a home, and refinancing that home, are among the most important financial decisions in a person's life. We believe that the experience of doing so should be fast, simple, safe and affordable. Title and settlement are critical to every real estate transaction. Modern technology and powerful analytics will supplement and enhance our associates' ability to deliver outstanding service to every single one of our customers."
States Title deploys predictive analytics to underwrite the title on a property, helping customers close real estate transactions safely, quickly, and often at lower cost. The new company will continue to operate under the North American Title brand and Lennar will assume a substantial minority equity ownership stake.
Max Simkoff will remain the CEO of the combined company, and the newly-formed management team will include current leadership from both States Title and North American Title, as well as new hires with relevant expertise. Title industry veteran Judd Hoffman, formerly president of the direct division at First American Title, has joined the new company as chief transformation officer and Noaman Ahmad will join as chief financial officer. Matt Zames, president of Cerberus Capital Management and a former chief operating officer at JP Morgan, has joined the board.
NATC's builder business, which delivers settlement services to Lennar's homebuyers, and a portion of its retail business, will remain with Lennar and operate as CalAtlantic Title. Approximately two-thirds of NATG's current associates will transition to the new company, while the balance will remain with CalAtlantic Title. Fifth Wall, a real estate technology-focused fund, introduced States Title and Lennar after initially co-leading States Title's Series A financing round in 2016.
