PLANTATION, Fla., April 19 /PRNewswire-FirstCall/ -- DJSP
Enterprises, Inc. (Nasdaq: DJSP, DJSPW, DJSPU), one of the largest
providers of processing services for the mortgage and real estate
industries in the United States,
today announced it has signed a definitive agreement to acquire
Timios, Inc., a national title insurance and settlement services
company. Timios is a licensed title insurance and escrow agent
operating in 38 States. Headquartered in Westlake Village, CA, with additional offices
in Houston and Plano, Texas, Timios will provide DJSP
Enterprises the capability to provide its customers a balanced
portfolio of services including new loan origination, refinance and
national REO closing and title. Additionally, Timios handles
national loss mitigation services and pre-foreclosure title
products from its multiple locations strategically placed for
time-zone sensitive fulfillment.
Management expects that Timios, which uses advanced technology
to produce a paperless environment, will aid DJSP Enterprises in
its commitment to provide its customers with enhanced customer
service in all lines of its business as it expands nationally.
Timios presently services purchase money, refinance, reverse
mortgage, REO and Deed-In-Lieu transactions for some of the largest
lenders and servicers nationwide. Last year, Timios closed in
excess of $500 million in residential
real estate mortgage transactions, and as forecasted, is expected
to more than double the volume in 2010. In addition, Timios
has the capability to complete title searches for DJSP Enterprises'
growing REO liquidation business and loss mitigation business
outside of Florida.
DJSP Enterprises will maintain Timios' three offices while
consolidating operations and back-office functions to streamline
and reduce expenses.
David J. Stern, Chairman and
Chief Executive Officer of DJSP Enterprises commented, "This
acquisition significantly expands our capacity to effectively
handle national services for our current client base. In
addition it will support our cyclical expansion into other lines of
the mortgage services business. In particular, our capacity to
process national REO closings, refinance transactions, short-sale
transactions, Deed in Lieu transactions, property reports, resale
transactions, and multiple valuation products will be meaningfully
expanded. Timios provides licenses for full settlement services in
38 states and we expect to obtain licenses in at least two
additional states before the end of this year.
This acquisition further demonstrates our commitment to becoming
the leading cyclical provider of products and services to the real
estate and mortgage industries."
"This transaction represents a great marriage of strengths and
assets," said Trevor Stoffer,
president and CEO of Timios, Inc. "Our management teams could not
ignore the obvious benefits to both organizations. DJSP
Enterprises' growth in the foreclosure space and our best in class
technology and servicing of originations will create a very
balanced portfolio. In addition, the financial support from DJSP
Enterprises will allow Timios to grow from a boutique services
company to a major player in settlement services with a complete
offering for lenders."
DJSP Enterprises will acquire Timios for $1.5 million in cash, 200,000 ordinary shares of
DJSP Enterprises, and up to 100,000 ordinary shares of DJSP
Enterprises to be earned upon achievement of defined performance
metrics. Timios had revenue of $5.05
million for the last 12 months and DJSP Enterprises expects
this acquisition to be accretive to earnings by the 3rd Quarter
2010.
The closing of the acquisition is subject to customary due
diligence, closing conditions and regulatory approvals.
About DJSP Enterprises, Inc.
DJSP Enterprises is the largest provider of processing services
for the mortgage and real estate industries in Florida and one of the largest in the United States. The Company provides a wide
range of processing services in connection with mortgages, mortgage
defaults, title searches and abstracts, REO (bank-owned)
properties, loan modifications, title insurance, loss mitigation,
bankruptcy, related litigation and other services. The Company's
principal customer is the Law Offices of David J. Stern, P.A. whose clients include all
of the top 10 and 17 of the top 20 mortgage servicers in
the United States, many of which
have been customers for more than 10 years. The Company has
approximately 1,000 employees and contractors and is headquartered
in Plantation, Florida, with
additional operations in Louisville,
Kentucky and San Juan, Puerto
Rico. The Company's U.S. operations are supported by a
scalable, low-cost back office operation in Manila, the Philippines that provides data
entry and document preparation support for the U.S. operation.
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, about DJSP Enterprises, Inc. and Timios, Inc. Forward looking
statements are statements that are not historical facts. Such
forward-looking statements, based upon the current beliefs and
expectations of the Company's management, are subject to risks and
uncertainties, which could cause actual results to differ from the
forward looking statements. The following factors, among others,
could cause actual results to differ from those set forth in the
forward-looking statements: business conditions; changing
interpretations of generally accepted accounting principles;
outcomes of government or other regulatory reviews, particularly
those relating to the regulation of the practice of law; the impact
of inquiries, investigations, litigation or other legal proceedings
involving the Company or its affiliates, which, because of the
nature of the Company's business, have happened in the past to the
Company and the Law Offices of David J.
Stern, P.A.; the impact and cost of continued compliance
with government or state bar regulations or requirements;
legislation or other changes in the regulatory environment,
particularly those impacting the mortgage default industry;
unexpected changes adversely affecting the businesses in which the
Company is engaged; fluctuations in customer demand; the Company's
ability to manage rapid growth; intensity of competition from other
providers in the industry; general economic conditions, including
improvements in the economic environment that slows or reverses the
growth in the number of mortgage defaults, particularly in the
State of Florida; the ability to
efficiently expand its operations to other states or to provide
services not currently provided by the Company; the impact and cost
of complying with applicable SEC rules and regulation, many of
which the Company will have to comply with for the first time after
the closing of the business combination; geopolitical events and
changes, as well as other relevant risks detailed in the Company's
filings with the U.S. Securities and Exchange Commission, (the
"SEC"), including its report on Form 20-F for the period ended
December 31, 2009, in particular,
those listed under "Item 3. Key Information - Risk Factors." The
information set forth herein should be read in light of such risks.
The Company does not assume any obligation to update the
information contained in this press release.
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Company
Contact:
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David J.
Stern
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Chairman and
CEO
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DJSP Enterprises,
Inc.
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Phone:
954-233-8000, ext. 1113
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Email:
dstern@dstern.com
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or
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Kumar
Gursahaney
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Executive Vice
President and CFO
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DJSP Enterprises,
Inc.
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Phone:
954-233-8000, ext. 2024
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Email:
kgursahaney@dstern.com
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Investor
Contact:
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Hayden IR
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Cameron
Donahue
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Phone:
651-653-1854
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Email:
cameron@haydenir.com
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SOURCE DJSP Enterprises, Inc.