Fidelity National Financial Inc., continuing its effort to diversify, said Tuesday it has agreed to pay $3 million in cash for 60% ownership of World Tax Service in Brea.
World Tax Service, a subsidiary of privately held WTC Financial of Brea, provides information about property tax payments to mortgage lenders. Under the terms of the deal, expected to close in mid-August, Fidelity will also provide WTC Financial with a $2-million line of credit for working capital to be used by World Tax Service. Also, WTC Financial has an option to buy 100,000 shares of Fidelity common stock at $14.50 per share, slightly higher than the trading price of $13 per share in recent weeks.
