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Publicly traded real estate technology company\u00a0Doma Holdings<\/a><\/strong>\u00a0has entered into a definitive agreement to sell to title insurance underwriter\u00a0Title Resources Group<\/strong>\u00a0(TRG) and become a private company. <\/p>\n Over the past year, the Max Simkoff-helmed firm has made its goal of becoming adjusted EBITDA profitable in 2023<\/a> widely known but failed to hit this mark. It reported an adjusted EBITDA loss of $3 million in the last quarter of 2023<\/a> and of $33.5 million for the entire year. <\/p>\n In 2023, Doma sold off its retail operations in Florida<\/a>, the Midwest<\/a>, Central and Northern California<\/a>, and Texas and made a major pivot in its business strategy<\/a>. Its most recent endeavor is Upfront Title<\/strong>, launched during the third-quarter earnings call<\/a> with investors and analysts. <\/p>\n \u201cThis 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,\u201d Simkoff said in a prepared statement. <\/p>\n The companies announced late Thursday that TRG has agreed to acquire Doma\u2019s outstanding shares at $6.29 per share of common stock, paying it in cash. This represents a 43% premium compared to the share\u2019s closing price on March 27. <\/p>\n If the transaction is approved, Doma\u2019s underwriting division, title insurance, and technology division will operate as subsidiaries of TRG under the umbrella of renamed Doma Technology LLC<\/strong> (Doma TechCo). <\/p>\n In addition, “Doma TechCo would continue to have access to underwriting services and continued technology deployment for Doma Title Insurance, Inc.,” the companies added. <\/p>\n Asset management firm Hudson Structured Capital Management Ltd<\/strong>., which is currently invested in Doma, is expected to maintain its investment in Doma TechCo. <\/p>\n Doma\u2019s board of directors unanimously approved the transaction, but it still requires the approval of stockholders and insurance regulators \u2013 a group representing 25% of the voting power has already signed an agreement supporting the transaction. <\/p>\n The deal is also conditioned on the completion of certain transactions, an investment by Lennar <\/strong>into TRG, and other arrangements with HSCM. Also, per the agreement, Doma may solicit alternative acquisition proposals during a 50-day \u201cgo-shop\u201d period. <\/p>\n The parties expect to close the transaction in the second half of 2024 when Doma will no longer be traded or listed on any public securities exchange. <\/p>\n In June 2023, TRG announced that HomeServices of America<\/a><\/strong>, a Berkshire Hathaway<\/a><\/strong> affiliate and one of the nation\u2019s largest residential real estate companies, has increased its ownership<\/a> stake in the company. <\/p>\n