(RTTNews) - Real estate services company Stewart Information Services Corp. (STC) announced Tuesday the mutual termination of its merger agreement with Fidelity National Financial, Inc. (FNF) after failing to obtain the necessary approval by the U.S. Federal Trade Commission (FTC).
In light of the FTC's decision, the Stewart Board has clearly determined to leverage its strong brand, financial position, and valued employees to grow the organization as a standalone entity to create greater shareholder value.
In connection with the termination of the merger agreement, Fidelity has agreed to pay a $50 million reverse termination fee to Stewart that was contemplated by the merger agreement.
Stewart has also announced changes to its executive leadership to support strategic focus on revenue growth and pre-tax margin improvement.
Effective immediately, current director Frederick Eppinger will become CEO while Matthew Morris, who has served as CEO since 2011, will remain with the company and assume the role of President.
John Killea, who has been President since 2017, will remain General Counsel and Chief Legal Officer, roles he has held since 2008 and 2012, respectively.