Fidelity to Acquire 2 Title Insurers

Fidelity National Financial Inc., a title insurance holding company in Irvine, said Friday that it has agreed to acquire two title insurance companies from Reading, Pa.-based Meridian Bancorp for a combination of stock and cash.

The two Meridian subsidiaries are Meridian Title Insurance Co. in Reading and American Title Insurance Co. in Miami. Fidelity said the deal will enhance its presence in the U.S. market by adding operations in East and Midwest states.

The transaction calls for Fidelity to get about $7 million worth of Meridian Title preferred stock in exchange for $1 million cash and 375,000 shares of Fidelity’s common stock. This represents 9.9% of Fidelity’s common shares outstanding.

In addition, Samuel A. McCullough, Meridian Bancorp’s chairman and chief executive, was appointed to Fidelity’s board.

The companies also agreed that Fidelity will provide consulting work to Meridian Title and its subsidiary, American Title, said Frank P. Willey, executive vice president and general counsel.