Private equity firms Flexpoint Ford and Vestar Capital Partners have reached an agreement to acquire Lereta LLC, a national provider of real estate tax and flood services for mortgage servicers, from its equity holders, including funds managed by Tarsadia Investments LLC.
Lereta chief executive officer, John Walsh, and the current senior management team will continue to lead the company.
Walsh said, “Flexpoint Ford and Vestar Capital Partners represent an ideal partnership for Lereta. The combination of these two well-regarded firms provides deep experience in financial services and a wealth of knowledge around scaling and enhancing technology. Lereta has distinguished itself by providing a high level of customer service in our markets. As a result, we’ve been successful in adding new customers and building market share. This transaction will enable us to accelerate our already strong growth, step up our investments in technology and scale our operations to address the changing needs of the mortgage servicing industry.”
“We found that Lereta’s customers really valued its flexibility, attentiveness and white-glove customer service,” said Steve Begleiter, managing director at Flexpoint Ford. “The company’s planned increase in technology investments will continue to further enhance its customers’ experience.”
“Lereta’s robust systems and service-oriented, client-first approach have enabled the company to deliver high-quality, regulatory-compliant solutions for its customers’ most complex needs for over 35 years,” said Nikhil Bhat, managing director and co-head of business and technology services at Vestar Capital Partners. “We are excited to support management as they accelerate the Company’s technology investments, further enhancing the speed, accuracy, and reliability of Lereta’s products while facilitating seamless integration with customers’ mission-critical workflows.”
Rothschild & Co served as the lead financial advisor to Lereta and its board of managers, and Kirkland & Ellis LLP served as legal counsel to Lereta. American Discovery Capital also served as a financial advisor to Lereta and its board of managers. Raymond James served as financial advisor to Flexpoint Ford and Vestar Capital Partners. Wachtell, Lipton, Rosen & Katz served as legal counsel to Flexpoint Ford. Kirkland & Ellis LLP served as legal counsel to Vestar Capital Partners.