Fidelity National Bids for Sister Firm

Fidelity National Financial Inc. made an offer Friday to buy out the other investors in Fidelity National Information Solutions Inc. and assume full ownership of the real estate technology firm in a stock-swap deal valued at $333.8 million.

Irvine-based Fidelity National Financial, the nation’s largest title insurance company, said ownership of all of Fidelity National Information Solutions would simplify operations and the management structure of the two sister companies. Currently, Fidelity National Financial owns 66% of Santa Barbara-based Fidelity National Information, and William P. Foley II serves as chairman of both companies.

The offer was announced after the markets closed. On Friday, shares of Fidelity National Financial rose $1.71 to $38.36 on the New York Stock Exchange. Fidelity National Information closed at $19.70, up 68 cents on the over-the-counter Bulletin Board.

Under the deal, each outstanding share of Fidelity National Information would be exchanged for 0.644 of a share in Fidelity National Financial. Based on Friday’s stock prices, the deal values Fidelity National Information shares at $24.70, or nearly a 25% premium.

Fidelity National Financial said its shareholders would need to approve the issuance of 8.5 million new shares of common stock to complete the deal.

Representatives of Fidelity National Information, whose shareholders also must approve the buyout, were unavailable for comment.

Fidelity National Information was formed by the 2001 merger of San Diego-based Vista Information Solutions Inc. and the real estate technology operations of Fidelity National Financial. In return, Fidelity National Financial ended up with a 66% stake in the new company.