CoreLogic’s offer for Symbility Solutions is fair, Industrial Alliance says

Industrial Alliance Securities analyst Blair Abernethy says CoreLogic’s offer for Symbility Solutions (Symbility Solutions Stock Quote, Chart: TSXV:SY) is a fair one.

On Monday, after market close, Symbility announced that it has agreed to be acquired by CoreLogic for 61.5 cents in cash, or a total value of approximately $159.5-million. Corelogic currently owns 28 per cent of Symbility Solutions stock.

“CoreLogic has been a supportive minority shareholder and data provider for a number of years, and the combination of Symbility’s leading claims platform and development capabilities with CoreLogic’s unmatched property data and analytics is a natural evolution that will benefit our customers, employees and shareholders,” CEO James Swayze said.

Abernethy today changed his rating on Symbility from “Speculative Buy” to “Tender” and lowered his price target from $0.70 to $0.62. The analyst says it is unlikely CoreLogic will be outbid.

“We recommend that investors TENDER to this offer as we view it as fair and believe it is unlikely that a superior bid would come forward given the price, CoreLogic’s existing 28% ownership, and he ongoing data and marketing relationship between the two companies,” Abernethy said.