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FTC OKs $2.9B Fidelity-Lender Processing deal

NEW YORK (AP) -- The Federal Trade Commission on Tuesday approved Fidelity National Financial's $2.9 billion acquisition of Lender Processing Services after ordering the companies to sell some assets.

The FTC said Fidelity National will have to sell its interest in a title plant in Portland and a copy of Lender Processing's title plant assets covering six counties in Oregon.

Lender Processing Services Inc. is a technology company that services the mortgage and real estate industries. Fidelity National provides title insurance, mortgage and other services. Both companies are based in Jacksonville, Fla. In May Fidelity National agreed to buy Lender Processing Services for about $2.82 billion, or $33.25 per share, in order to broaden and diversify its business. The companies valued the cash-and-stock deal at $2.9 billion.

The companies expect the deal to close Jan 2.

Once the deal is complete Lender Processing was to be combined with Fidelity National's ServiceLink business. It will then sell a 19 percent equity stake in that business to Thomas H. Lee Partners LP for $381 million.

Shares of Fidelity National Financial Inc. gained 94 cents, or 2.9 percent, to $32.94 on Thursday, and shares of Lender Processing Services rose 53 cents to $37.58.