Title Company Consolidation
13.41% Annualize Return
As of August 12, 2024
Doma Holdings Inc.
Worth being bullish on DOMA 0.00%↑ at $6.02 or less
Current Price – $6.00
Offer/Acquisition Price – $6.29 in cash
Upside – 4.83% aggregate
Duration - estimated 4.5 months left until event close
Annualized Return - 13.41%
Event Close Date – expected year end 2024
The situation: 🤔😕🆘
Who
Aquirer is Title Resources Group, a real estate title insurance underwriter
Target is Doma Holdings Inc. (DOMA 0.00%↑) a real estate technology company focused on changing the traditional title insurance industry.
What
DOMA 0.00%↑ management anticipates deal closure between now and the end of the year 2024. Expecting to receive $6.29 in an all-cash transaction valued at nearly $88 million. Doma’s underwriting division, title insurance, and technology division will operate as subsidiaries of TRG under the umbrella of renamed Doma Technology LLC (Doma TechCo).
https://www.businesswire.com/news/home/20240328798413/en/
When
Estimated deal closure date is by the end of the year, December 31, 2024. If closed before this would incresase the annualized return if closed after this decreases it which is unfavorable.
Where
DOMA 0.00%↑ is headquatered in San Francisco, California with a global footprint
Acquirer Title Resource Group is headquartered out of Laurel, New Jersey
Why
Deal is likely to be consummated by the end of 2024 - December 31, 2024. With the 17 week US T-bill pricing at a discount percentage of 5.15% and the 26 week US T-bill pricing at a discount percentage of 4.98% annualized, the market seems to find that the current $6.00 price as acceptable risk.