Black Knight Financial Services Inc., a mortgage-technology company formed from businesses previously owned by Lender Processing Services Inc., filed for a $100 million initial public offering.
The figure is a placeholder used to calculate fees and may change. The Jacksonville, Fla.-based company provides platforms used by almost all of the largest U.S. mortgage originators and servicers. Black Knight said in a prospectus today that it could benefit as those companies look to outsource tasks to technology firms.
Black Knight Financial products “differentiate us from other technology providers serving the mortgage industry and position us particularly well for evolving opportunities in this market,” the company said in the document.
LPS came under scrutiny for its role in filing improper paperwork after the 2008 credit crisis. It agreed in January 2013 to pay $127 million in a settlement with 46 states over improper foreclosure practices, including the “robosigning” of documents used to repossess homes.
Title insurer Fidelity National Financial Inc. bought LPS this year for more than $3 billion and reorganized its operations into two companies. ServiceLink Holdings contains LPS’s transaction-services unit that was the subject of regulatory probes. Black Knight Financial got most of LPS’s technology, data and analytics business. Funds affiliated with private-equity firm Thomas H. Lee Partners LP took a 35% stake in both businesses.
Black Knight Financial posted revenue of about $632 million from Jan. 2 to the end of September, according to the prospectus. It had a net loss of $117.8 million during that period.