FNF Reorganizes Former LPS Into Black Knight Financial Services

Posted by Patrick Barnard on January 09, 2014 No Comments
Categories : Residential Mortgage

Fidelity National Financial Inc. (FNF) has reorganized the former Lender Processing Services Inc. (LPS) businesses into a formation of a wholly owned subsidiary called Black Knight Financial Services Inc., and has issued a 35% interest in each of Black Knight's two operating subsidiaries, ServiceLink Holdings LLC and Black Knight Financial Services LLC (BKFS), to funds affiliated with Thomas H. Lee Partners LP and certain related entities.

Black Knight, through ServiceLink and BKFS, now owns and operates the former LPS businesses and FNF's ServiceLink business. FNF's core operating subsidiaries now consist of Fidelity National Title Group Inc. and Black Knight, according to FNF.

FNF says BKFS comprises LPS' former technology, data and analytics businesses and the technology offerings previously owned by FNF's ServiceLink division. Tom Sanzone will be the CEO of BKFS. Sanzone joined FNF in 2013 and has more than 25 years of experience in the financial services industry.

ServiceLink consists of FNF's former ServiceLink division and LPS' former transaction services business. ServiceLink provides a suite of origination- and default-related products and services to mortgage originators, says FNF. Chris Azur will be the CEO of ServiceLink and was formerly president of FNF's ServiceLink division and has more than 20 years of experience in the mortgage transactions services business.

Azur and Sanzone will report to William P. Foley II, chairman of FNF and Black Knight. Additionally, Kirk Larsen will serve as chief financial officer of Black Knight, reporting to Foley. Prior to joining Black Knight, Larsen was corporate executive vice president of finance and treasurer of FIS.

Last May, FNF announced its plans to acquire LPS for $2.9 billion. Several months later in December, LPS stockholders approved the acquisition, and more than 98% of the votes cast at the Special Meeting of Stockholders were in favor of the transaction, representing more than 78% of all outstanding shares.
Shortly after, the bid cleared a major hurdle when the deal won approval from U.S. antitrust regulators.

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