Gold prices tick higher on fresh U.S. tariff threats, Fed rate cut hopes
DENVER - Covius Services, LLC, a provider of technology solutions for the financial sector, has announced a definitive agreement to acquire Title365 from Blend Labs, Inc. (NYSE: BLND), a fintech company currently valued at approximately $967 million. According to InvestingPro data, Blend Labs maintains a strong financial position with more cash than debt on its balance sheet. Title365 is a national title insurance and settlement services company, which will expand Covius’ title presence and technology platform integrations.
The acquisition, pending regulatory approvals and third-party consents, is expected to close in the coming months. Title365 operates in 43 states and serves various clients, including top lenders and servicers, capital market participants, and home equity originators. Its range of products spans first and second mortgage origination services, including default title, and it boasts broad integration with leading loan origination and industry platforms. While Blend’s stock has seen a significant decline of about 27% over the past six months, InvestingPro analysis shows two analysts have recently revised their earnings expectations upward for the upcoming period.
Post-acquisition, Title365 will continue its partnership with Blend, providing integrated title and closing services to Blend’s customers. Kirby Hulbert, President of Title365, along with his team, will join Covius’ Settlement Services division. Blend Labs maintains a healthy liquidity position with a current ratio of 2.41, indicating strong ability to meet short-term obligations.
Rob Clements, Chairman and CEO of Covius, remarked on the acquisition’s alignment with Covius’ strategy to deliver comprehensive tech-enabled products and services across various sectors of the mortgage industry. John Surface, CEO of Covius Services, highlighted the benefits of expanded product offerings and deeper client relationships resulting from the acquisition.
Nima Ghamsari, CEO and Co-founder of Blend, expressed enthusiasm for the partnership with Covius, which allows Blend to concentrate on becoming a leading software platform for financial services while still offering customers access to quality title services.
The acquisition is based on a press release statement and is yet to be finalized pending the necessary approvals. Covius has been recognized as a leader in the industry, recently named a 2025 HousingWire Tech100 winner, and offers a range of services including loss mitigation, document and data solutions, and title and settlement services. Blend Labs Inc. is known for its digital origination platform that supported $1.2 trillion in loan applications in 2024.
In other recent news, Blend Labs reported its Q1 2025 earnings, revealing a loss of $0.01 per share, which did not meet the forecasted gain of $0.01. Revenue also fell short at $26.77 million against an expected $43.18 million. Despite these misses, the company demonstrated resilience with a 12% year-over-year growth in platform revenue, supported by a strong non-GAAP gross margin of 73%. Additionally, Blend Labs achieved a record free cash flow of $15.5 million, representing a 58% free cash flow margin. Meanwhile, Keefe, Bruyette & Woods (KBW) raised their price target for Blend Labs to $4.00 from $3.50, maintaining a Market Perform rating, reflecting a cleaner outlook on the company’s future prospects. JMP analysts reiterated their Market Outperform rating with a steady price target of $7.00, expressing confidence in Blend Labs’ projected revenue growth. In other developments, Blend Labs appointed Reva Rao as Head of Digital Transformation for Credit Unions, aiming to enhance digital experiences for its credit union clients. These recent developments highlight Blend Labs’ strategic initiatives and financial performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.