Florida-based Walter Investment Management Corp. announced the signing of a definitive agreement to acquire all the stock of Security One Lending (S1L), a California-headquartered retail and wholesale reverse mortgage loan originator.
According to a release from Walter Investment, the transaction--valued at $31 million--consists of $20 million paid in cash at the time of signing (December 31, 2012) and an additional $11 million to be paid upon S1L's achievement of certain designated performance targets over the next year.
""We are extremely pleased to add the S1L business to the Walter Investment portfolio,"" said Mark J. O'Brien, chairman and CEO of Walter Investment. ""This acquisition creates a combined platform with diverse, established originations channels without significant overlap. Additionally, S1L is managed by a seasoned team with deep experience in both the reverse and forward mortgage spaces, which adds significant depth to the existing RMS management structure.
""We continue to believe the reverse mortgage sector has very attractive long-term growth prospects and believe S1L is uniquely positioned to help us capitalize on these prospects by capturing greater market share in the coming year. We anticipate that the pooled strengths of our businesses will enhance our ability to take advantage of these opportunities,"" he added.
Walter Investment's board of directors has already approved the transaction, and closing is subject to regulatory approval and other consents. The company expects to complete the transaction during Q1 2013.