Fidelity National Financial Reportedly in Talks to Acquire LPS

Mortgage processor Lender Processing Services (LPS) is in talks to be acquired by title insurer Fidelity National Financial (FNF) and private equity firm Thomas H. Lee Partners in a $2.9 billion deal, according to the Wall Street Journal, which cited unnamed sources.

The agreement would value LPS at around $33 a share and could potentially close as early as next week, according to those reports. An LPS spokeswoman did not immediately return a message seeking comment. A Fidelity National spokesman did not return a similar call.

LPS was spun-off from Fidelity National Information Services (FIS) in 2008. Fidelity National Financial owns a stake in FIS. 

LPS, which is based in Jacksonville, Fla., recently agreed to pay $14 million in a settlement stemming from a 2010 lawsuit in which investors claimed they were deceived over the mortgage processor’s involvement in so-called robo-signing. The company previously paid $127 million to 46 states in relation to the matter.