Title Insurer Fidelity National to Acquire FGL Holdings

Fidelity National Financial Inc said on Friday it would acquire U.S. annuities and life insurance firm FGL Holdings Inc. in a deal valued at $2.7 billion, as it seeks to expand beyond its core title insurance business. Reuters reported on Thursday that Fidelity was close to acquiring FGL. Under the terms of the cash-and-stock deal, the holders of FGL’s shares may elect to receive either $12.50 per share in cash or 0.2558 of a share of the FNF stock for each share of FGL they own, representing a premium of about 3% to FGL’s Thursday close. Fidelity had a 7.6% stake in FGL as of the end of September. The deal is expected to increase Fidelity’s earnings per share by 10% in 2020 and by 20% in 2021. Des Moines, Iowa-based FGL generated $1.55 billion in revenue in the first nine months of 2019, up 68% year on year.