Publicly
traded
real
estate
technology
company Doma
Holdings has
entered
into
a
definitive
agreement
to
sell
to
title
insurance
underwriter Title
Resources
Group (TRG)
and
become
a
private
company.

Over
the
past
year,
the
Max
Simkoff-helmed
firm
has
made
its
goal
of becoming
adjusted
EBITDA
profitable
in
2023 widely
known
but
failed
to
hit
this
mark.
It
reported
an
adjusted
EBITDA
loss
of
$3
million
in
the
last
quarter
of

2023
and
of
$33.5
million
for
the
entire
year. 

In
2023,
Doma
sold
off
its
retail
operations
in Florida, the
Midwest, Central
and
Northern
California,
and
Texas
and
made
a
major pivot
in
its
business
strategy.
Its
most
recent
endeavor
is Upfront
Title,
launched
during
the third-quarter
earnings
call with
investors
and
analysts. 

“This
transaction
is
an
important
step
in
the
growth
and
evolution
of
Doma,
further
strengthening
us
as
we
deploy
our
market-tested
technology
for
large
mortgage
market
participants,”
Simkoff
said
in
a
prepared
statement. 

The
companies
announced
late
Thursday
that
TRG
has
agreed
to
acquire
Doma’s
outstanding
shares
at
$6.29
per
share
of
common
stock,
paying
it
in
cash.
This
represents
a
43%
premium
compared
to
the
share’s
closing
price
on
March
27.

If
the
transaction
is
approved,
Doma’s
underwriting
division,
title
insurance,
and
technology
division
will
operate
as
subsidiaries
of
TRG
under
the
umbrella
of
renamed Doma
Technology
LLC (Doma
TechCo).

In
addition,
“Doma
TechCo
would
continue
to
have
access
to
underwriting
services
and
continued
technology
deployment
for
Doma
Title
Insurance,
Inc.,”
the
companies
added.

Asset
management
firm Hudson
Structured
Capital
Management
Ltd.,
which
is
currently
invested
in
Doma,
is
expected
to
maintain
its
investment
in
Doma
TechCo.

Doma’s
board
of
directors
unanimously
approved
the
transaction,
but
it
still
requires
the
approval
of
stockholders
and
insurance
regulators
–
a
group
representing
25%
of
the
voting
power
has
already
signed
an
agreement
supporting
the
transaction. 

The
deal
is
also
conditioned
on
the
completion
of
certain
transactions,
an
investment
by Lennar into
TRG,
and
other
arrangements
with
HSCM. Also,
per
the
agreement,
Doma
may
solicit
alternative
acquisition
proposals
during
a
50-day
“go-shop”
period.

The
parties
expect
to
close
the
transaction
in
the
second
half
of
2024
when
Doma
will
no
longer
be
traded
or
listed
on
any
public
securities
exchange.  

In
June
2023,
TRG
announced
that


HomeServices
of
America,
a Berkshire
Hathaway affiliate
and
one
of
the
nation’s
largest
residential real
estate companies,
has

increased
its
ownership
stake
in
the
company.

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