Title insurance startup Doma to go private

San Francisco-based title insurer Doma, which went public in 2021 in a $3 billion deal, is going private following an agreement with title insurance underwriter Title Resources Group.

TRG would acquire all of the outstanding shares of Doma for $6.29 per share of common stock in an all-cash transaction, an approximate premium of 43% over Doma’s closing share price on March 27, 2024. Excluding debt, the deal values Doma’s equity at ~$84 million. In 2021, Doma announced $150 million in debt financing from HSCM Bermuda, which had previously invested in the startup.

After the close of the transaction, Doma’s underwriting division, Doma Title Insurance, and its technology division, expected to be renamed Doma Technology LLC (“Doma TechCo”), will operate as subsidiaries of TRG with Doma TechCo operating on a separately-capitalized basis. HSCM Bermuda will maintain an investment in Doma through Doma TechCo.

Under the terms of the merger agreement, Doma may solicit alternative acquisition proposals from third parties during a 50-day “go-shop” period.

Founded in 2016, Doma raised ~$230 million before going public and some of its backers include Assurant Ventures and SCOR Global P&C Ventures. The startup made several workforce cuts.

“Today’s announcement is a win for Doma’s stockholders and for both companies’ employees and customers. This transaction is an important step in the growth and evolution of Doma, further strengthening us as we deploy our market-tested technology for large mortgage market participants.” – Max Simkoff, Doma CEO.