FNF Has Acquired DRI Management Systems


Advisory Role: Krall & Co. Inc. acted as exclusive financial advisor to DRI.

Announcement Date: July 9, 2012

Target: DRI Management Systems, Inc. develops, markets and sells default management software used primarily by mortgage loan servicers for the administration of delinquent single family residential loans throughout the United States. The Company’s software enables servicers to manage defaulted loans from early stage delinquency through foreclosure, bankruptcy and the sale of REO. Customers consist of large lenders that service loans in their own portfolio and for the account of third party investors and mortgage investment firms that buy credit sensitive or impaired mortgage loan portfolios as principals and service their own portfolios. DRI, which is based in Newport Beach, California, was founded in 1984 by Earl “Duke” Olrich,
the Company’s President and CEO.

Buyer:  Fidelity National Financial, Inc. (“FNF”) provides title insurance, mortgage services and diversified services. FNF is the nation’s largest title insurance company through its title insurance underwriters — Fidelity National Title, Chicago Title, Commonwealth Land Title, and Alamo Title — which collectively issued more title insurance policies in 2011 than any other title company in the United States. FNF owns minority interests in Ceridian Corporation, Remy International, Inc. and American Blue Ribbon Holdings, LLC. FNF is headquartered in Jacksonville, Florida and trades on the NYSE under the ticker FNF.

Deal Rationale: As a result of the acquisition, FNF acquires a technology platform that will be deployed as a strategic work management solution across the loan servicing continuum.  The platform dramatically simplifies complex workflows, disparate user interface frameworks and databases from loan boarding through default and asset disposition.  DRI will become a part of Fidelity’s ServiceLink subsidiary, which provides origination and default related products, services and technology for the mortgage industry.

Terms: Financial terms were not disclosed.