Fidelity to take over Stewart in $1.2bn deal

Stewart Information Services Corp. has accepted a $1.2bn buyout in cash and stock from rival Fidelity National Financial. If approved, Fidelity will emerge as the largest title company in the US, with an estimated 44-percent market share. Fidelity, whose brands include Fidelity National Title, Chicago Title, Commonwealth Land Title and National Title of New York, reported $7.2bn in revenue last year, with $1bn in earnings. Fidelity estimates it will save $135m by acquiring Stewart, even after assuming its $109m debt. If the deal does not secure the necessary regulatory approval, Fidelity is required to pay Steward a reverse break-up fee of $50m.