First American Financial Buys Docutech For $350 Million

First American Financial (NYSE:FAF) has closed the buyout of software solutions provider, Docutech for around $350 million.

Docutech provides a range of document technology solutions for mortgage, home equity and consumer lending, ranging from document generation to eDelivery, eSign, eClose and print fulfillment. It has offices in Scottsdale and Idaho. Its solutions aid in providing a digital real-estate closing experience.

The buyout of Docutech indicates First American Financial’s focus on boosting the home-buying experience for consumers and driving digital transformation of the real estate settlement process. Also, the deal reflects the acquirer’s commitment to invest and enhance its core business.

The innovative technology of Docutech complements the acquirer’s existing capabilities to cater to lender customers, with beginning-to-end digital mortgage and settlement services. First American Financial can provide a more enhanced digital experience to borrowers.

As far as Docutech is concerned, this deal will enable it to get access to First American’s industry-leading property data and other products and services, thus boosting the quality, accuracy and speed of its services.

First American pursues strategic acquisitions to strengthen its core business and expand its valuation and data businesses. The company has consolidated its capabilities with Forsythe Appraisals, RedVision and TD Service Financial. The company remains focused on making acquisitions in order to meet its risk-adjusted return target.

Shares of this Zacks Rank #1 (Strong Buy) property and casualty insurer have gained 21.2% in a year’s time, outperforming the industry's growth of 3.2%.

Other Stocks to Consider

Some other top-ranked stocks from the insurance sector include Fidelity National Financial, Inc. (NYSE:FNF) , Cincinnati Financial Corp. (NASDAQ:CINF) and Axis Capital Holdings Limited (NYSE:AXS) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Cincinnati Financial and Fidelity National Financial surpassed estimates in each of the last four quarters, with the average positive surprise being 17.9% and 14.83%, respectively.

Axis Capital Holdings surpassed estimates in two of the last four quarters, with the average positive surprise being 53.5%.

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