The move furthers First American’s goal of providing a digital, end-to-end closing platform.
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First American Financial Corporation, a title, settlement service and risk management firm, is acquiring mortgage closing technology firm Docutech for $350 million in cash, it was announced Thursday. With the acquisition, First American moves closer to providing its lender customers with an end-to-end digital mortgage and settlement services platform.
“The acquisition of Docutech reflects our steadfast commitment to invest in and grow our core business,” First American CEO Dennis Gilmore said in a statement. “Moreover, it demonstrates our dedication to improving the home-buying experience for consumers and driving the digital transformation of the real estate settlement process.”
“We’re excited to soon welcome to First American the people of Docutech, a highly respected leader in the document technology solutions industry,” Gilmore added. “Together, we will accelerate the evolution of real estate closings.”
Docutech was founded in 1991 and has since grown to offer its proprietary digital platform — which is fully integrated with third-party and proprietary loan origination systems — to a client base of more than 175 lenders.
The company also provides digital, regulatory-compliant loan documents for mortgage and home equity loans, in an effort to move the real estate closing process to a more digital experience.
“Joining the First American family strengthens our ability to provide products and services that help lenders offer a more digital mortgage experience and adapt to today’s changing business landscape,” said Docutech President and CEO Amy Brandt, who will continue to lead company operations.
The announcement of the acquisition comes on the same day the company posted gains in both revenue and net income.
First American reported $1.7 billion in revenue for the fourth quarter of 2019, which is up from the $1.4 billion it posted over the same quarter of 2018. The company also posted $6.2 billion in revenue in 2019, up over the $5.7 billion in revenue it posted in 2018.
In total, First American posted a net income of $224 million in the fourth quarter of 2019, up over the $91.6 million net income it posted in the fourth quarter of 2018. Full-year net income was reported at $707 million, which is up significantly from the $474 net income the company posted in 2018.