Unstoppable Merger: Doma Strikes $6.29 All-Cash Deal with TRG, Sends Stock Soaring 34%!

Doma logo

Doma, a company listed on the New York Stock Exchange (NYSE), made a deal with Title Resources Group (TRG), a major title insurance underwriter in the United States. According to the agreement, TRG would buy all the shares of Doma for $6.29 each, paying in cash.

This price represents a 43.0% premium over Doma’s closing stock price on March 27, 2024. After the acquisition, Doma’s underwriting division, known as Doma Title Insurance, and its technology division, expected to be renamed Doma Technology, will operate as separate subsidiaries under TRG. Doma Technology will have its own capitalization and operate independently. Following this news, Doma’s stock price rose by 34% during after-hours trading on Thursday.

Key Points:

Parties Involved: Doma, a publicly traded company listed on NYSE, entered into an agreement with Title Resources Group (TRG), a significant player in the title insurance sector.
Acquisition Details: TRG agreed to acquire all outstanding shares of Doma at $6.29 per share, paying in cash. This price represents a substantial premium of 43.0% over Doma’s closing share price on March 27, 2024.
Operational Changes: After the acquisition is completed, Doma’s underwriting division, Doma Title Insurance, and its technology division will operate as separate subsidiaries under TRG. Doma Technology will undergo a renaming process but will continue its operations independently with separate capitalization.
Market Reaction: Following the announcement, Doma’s stock price surged by 34% during after-hours trading on Thursday, indicating positive investor sentiment towards the merger and acquisition deal.
Implications: This merger signifies a significant development in the title insurance industry, as it brings together two notable entities. It may lead to synergies and efficiencies in operations, potentially benefiting both companies and their stakeholders.
Future Outlook: The successful completion of the acquisition could result in strengthened market position and expanded offerings for TRG, while Doma could leverage the resources and expertise of TRG to fuel its growth trajectory.

Under the terms of the transaction, Title Resources Group will acquire all outstanding shares of Doma at $6.29 per share in an all-cash transaction. This represents a remarkable premium of 43.0% over Doma’s closing share price on March 27, 2024, reflecting the confidence in Doma’s potential and the value it brings to the table.

Following the completion of the merger, Doma’s underwriting division, Doma Title Insurance, along with its technology division, anticipated to be renamed Doma Technology, will continue their operations as subsidiaries of TRG. Doma TechCo will operate on a separately-capitalized basis, ensuring continuity and stability in their respective operations.

The positive response from the market is evident, with the stock price climbing 34% during after-hours trading on Thursday. This surge reflects the optimism surrounding the synergies and opportunities that this merger presents. Overall, the agreement between Doma and TRG marks a strategic move with the potential to reshape the landscape of the title insurance sector.

finplate- Unstoppable Merger: Doma Strikes $6.29 All-Cash Deal with TRG, Sends Stock Soaring 34%! — *Unstoppable Merger: Doma Strikes $6.29 All-Cash Deal with TRG, Sends Stock Soaring 34%!*

About Doma

Doma, formerly known as States Title Holding, Inc., is revolutionizing the real estate industry by combining cutting-edge technology with deep human expertise. Their mission is to remove the friction and frustration from real estate transactions, making home closings instant and affordable.

Here are some key points about Doma:

Vision and Purpose:
- Doma aims to elevate customer outcomes by transforming residential real estate transactions.
- They are committed to removing burdensome procedures, excessive paperwork, and frustration associated with closing a mortgage.
- By combining technology and human expertise, they envision a future where real estate transactions are seamless and efficient.
Leadership Team:
- Doma’s experienced leadership team includes:
  - Max Simkoff (CEO)
  - Mike Smith (EVP, Chief Financial Officer)
  - Andy Mahdavi (EVP, Chief Technology Officer)
  - Jesse Kaplan (EVP, Chief Product Officer)
  - And other industry leaders who are shaping the future of real estate transactions.
Board Members:
- Doma’s board includes notable individuals such as:
  - Larry Summers (Former Treasury Secretary, U.S. Treasury)
  - Matthew E. Zames (Former President and Senior Managing Director, Cerberus Capital Management)
  - Stuart Miller (Executive Chairman, Lennar Corporation)
  - And others who contribute to Doma’s vision.
Awards and Recognition:
- Doma takes pride in its achievements in culture and innovation.
- Their accolades validate their disruptive work in building an instant, frictionless, and more affordable home closing experience.
Brands:
- Doma operates under several brands, including:
  - States Title
  - North American Title Company (NATC)
  - North American Title Insurance Company (NATIC)
- These brands offer solutions for lenders, real estate professionals, title agents, and homeowners, simplifying closings and enhancing customer satisfaction.