An appraisal management company that claims to be among the biggest of its kind has been acquired by an insurance product provider.
StreetLinks National Appraisal Services, an AMC that is based in Indianapolis, was originally founded in 1996 as Superior Appraisal Services.
By 2008, when it was operating as PipeFire LLC, a majority interest in the Mortgage Daily advertiser was acquired by NovaStar Financial Inc., and it was renamed StreetLinks.
NovaStar, a subprime lender that survived the mortgage crisis, changed its name to Novation Companies Inc. in 2012. Its ownership stake in StreetLinks was 88 percent.
StreetLinks, which reports its current annual fee income at $140 million, claims that it “is among the largest independent U.S. appraisal management companies.”
Statements issued Wednesday indicate that Assurant Inc. has acquired StreetLinks. The StreetLinks’ brand will be retained, as will the Indianapolis headquarters and an office in Tampa, Fla.
The total selling price to Novation and other shareholders was $60 million in cash. The sellers can earn a potential earn-out payment of up to $12 million after the closing based on StreetLinks’ future performance.
Calling the sale “a significant strategic shift,” Novation said it will invest the proceeds in its cloud-based communications software subsidiary and use some of the proceeds for general corporate purposes.
Novation Chief Executive Officer Lance Anderson said that StreetLinks was a “great investment” but noted that now is the right time to move resources based on the greatest long-term potential.
Assurant CEO Gene Mergelmeyer called the acquisition “a natural extension for Assurant Specialty Property.”
