Starrex International, Ltd has entered into a definitive agreement with affiliates of StoicLane, Inc. a long-term growth platform making strategic acquisitions to support digitizing finance, insurance and real estate verticals.
StoicLane agreed to acquire Starrex’s real estate appraisal management business conducted by Property Interlink, LLC and its real estate appraisal business conducted by Reliable Valuation Service, LLC, and substantially all of the related assets for a cash purchase price of $9.8 million on a cash free, debt free basis, according to a Starrex International press release.
The purchase price is subject to working capital and other adjustments in accordance with the agreement, which stems from an unsolicited offer and is a result of arm’s length negotiations between representatives of Starrex, StoicLane and their respective advisors.
Starrex is a national provider of real estate appraisal and credit reporting services to mortgage lenders and brokers in the U.S. whose technology platform and specialized business model provides a streamlined approach for its clients.
The transaction has been approved unanimously by Starrex’s board of directors, which has determined that the transaction is in the best interests of Starrex and its shareholders and recommends that shareholders vote in favour of approving the transaction at the annual general and special meetings of shareholders, which is expected to be held Nov. 3.
The transaction must be approved by shareholders holding at least 66.2 percent of shares voted in person or by proxy at the meeting. The agreement includes covenants that the assets being acquired will be maintained and the business will be operated in the ordinary course prior to closing and non-solicitation provisions. The agreement does not allow Starrex to enter into an agreement with respect to an alternative transaction, the release stated.
Following completion of the sale transaction, Starrex said it intends to focus on other opportunities in the commercial and residential real estate market, which it believes to be in the best interests of Starrex.
“We are extremely excited to enter into this transaction to sell Property Interlink and Reliable Valuation Service,” Starrex CEO/President Matthew Hill said in the release. “We have been very impressed with the team at StoicLane and feel confident that our clients, vendors and beloved employees are in good hands going forward. The monetization of these assets will allow Starrex the ability to focus on acquisition opportunities in the commercial and residential real estate sector.”