Fidelity National Financial Invests in Software Firm

With an eye on the growing field for computerized real estate information, Fidelity National Financial Inc. said Monday that it has agreed to purchase a 19.8% stake in a small California computer services company for an undisclosed amount of cash.

Fidelity, the nation’s fourth-largest title insurer, said it is also picking up the right to acquire an additional 20% of Smith/Norris Corp. in Pleasanton later. In addition, Fidelity will lend the privately held software company $2 million for expansion.

Smith/Norris produces a series of products that help county and city governments access and share common information quickly and simply. It also provides public access via computer to public documents.

The company uses scanners to copy public records such as deeds, liens, mortgages and other legal documents into computer systems.

“Computer technology in real estate services has tremendous growth possibilities,” said Andrew F. Puzder, Fidelity’s general counsel.

Puzder said the investment could also lead some day to its own paperless county title plants, where hard copies of deeds, mortgages, taxes and other property records now reside.

“But for now, we want to get the company up and running and profitable,” Puzder said. “It plans to sell its products to counties across the United States.”

As part of the investment and financing, Fidelity will name two members to Smith/Norris’ five-member board of directors.

While Smith/Norris faces some competition, Puzder said, no large companies dominate the growing industry of technology make-overs for the public sector. Fidelity also owns about 20% of one competitor, DataTree Corp., he said.

At the Orange County recorder’s office, DataTree scans public records while Smith/Norris is developing software to issue receipts and index records automatically.