Fidelity National Title Firm to Buy Kansas Company : Finance: Deal for $30 million in cash and stock marks nationwide expansion by the Irvine-based insurer.

By DAN MARGOLIS

June 20, 1995 12 AM PT

TIMES STAFF WRITER

IRVINE — Fidelity National Financial Inc., in a major nationwide expansion that will boost its revenue by 60%, said Monday that it has agreed to acquire a Kansas company in a deal for cash and stock worth $30 million.

Fidelity’s purchase of Nations Title Inc. of Overland Park, Kan., would help it to diversify geographically and rely less on the sluggish California real estate market. Fidelity is the nation’s fourth-largest title insurer.

Frank P. Willey, Fidelity’s president, said the purchase would “dramatically” increase the Irvine company’s revenue, which was $493 million last year.

The addition of Nations Title, the country’s eighth-largest title insurer with sales last year of $297 million, would rank Fidelity just below the nation’s third-largest title insurer, Commonwealth Land Title Insurance Co. Nations Title was known as TRW Title Inc. until it was acquired 17 months ago.

“We should increase our operating efficiencies while enhancing our balance sheet as with our other acquisitions,” Willey said. He agreed with analysts that the added revenue, together with Fidelity’s well-known eye for cutting costs, should bolster its income.

Fidelity, cobbled together in the early 1980s from a few title firms, has expanded rapidly through key acquisitions in an industry that has been consolidating quickly in recent years. It purchased Western Title Company of Washington in March and World Title Co.’s San Diego County operation last year. It picked up World’s remaining business after World was seized last week by state regulators.

“They are adding volume to a low-cost system, which will translate into profit,” said Peter A. Russ, an analyst for Shelby Cullom Davis brokerage in New York. “Their interest is to keep adding different areas of the country and to diversify their business.”

Fidelity has been extremely adept at finding ways to expand, Russ said, while at the same time keeping their operating costs low.

“The title insurance industry will continue to consolidate into four or five major companies,” he said.

Under the terms of the acquisition, Fidelity will pay Nations about $6 million in cash and $24 million in stock when the transaction is completed, said Andrew F. Puzder, Fidelity’s executive vice president.

(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)

Fidelity’s Latest Purchase

Fidelity National Financial increased its revenue 60%, as well as its nationwide presence, by acquiring Nations Title Inc. Details on the two companies:

FIDELITY NATIONAL FINANCIAL

* Business: Title insurance

* Headquarters: Irvine

* Chairman: William P. Foley II

* Employees: 3,500

* Offices: 375

* 1994 revenue: $492.8 million

* Other recent acquisitions: Western Title, Butte Title

NATIONS TITLE INC.

* Business: Title insurance

* Headquarters: Overland Park, Kan.

* CEO: Henri Van Hirtum