Doma Holdings Inc. (NYSE: DOMA) shares are exhibiting an upward trend in the pre-market trading session today, demonstrating a notable increase of 35.27% to reach $6.14. The previous session saw DOMA closing with a 3.18% gain, reaching $4.54. This surge in DOMA stock value follows the announcement of a merger deal.
Following shareholder and regulatory approval, Doma Holdings (DOMA) has announced its intention to merge with Title Resources Group (“TRG”), one of the country’s leading title insurers.
TRG is expected to pay $6.29 per share of common stock to Doma for all outstanding shares as part of this transaction, which will be completed entirely with cash. This offer amounts to around 33.9% over the trailing 30-day volume weighted average closing price that ends on March 27, 2024, and about 43.0% over Doma’s closing share price on March 27, 2024.
Upon completion of the merger, Doma’s underwriting arm, Doma Title Insurance, Inc., and its technology division, anticipated to be renamed Doma Technology LLC, will function as subsidiaries of TRG, with Doma TechCo operating with separate capitalization.
Hudson Structured Capital Management Ltd. (operating its insurance business as HSCM Bermuda or “HSCM”) will uphold its investment in Doma through Doma TechCo, ensuring continued access to underwriting services and technology deployment for Doma Title Insurance, Inc.
This announcement marks a significant win for Doma’s shareholders, as well as for the employees and clients of both entities. It signifies a pivotal juncture in Doma’s growth and development, bolstering the company’s position as it integrates proven technology solutions for major players in the mortgage market.
The transaction, unanimously approved by Doma’s Board of Directors, based on the recommendation of a special committee comprising entirely independent directors, is anticipated to conclude in the latter half of 2024.
While the transaction is not contingent upon financing conditions, it is subject to the fulfillment of specific transactions as outlined in the merger agreement, an investment by Lennar into TRG, and the finalization of arrangements with HSCM.
