|This Slide: #98 of 100|
Slide #98. Walter Investment Management Corp. — Reverse Mortgage Solutions, Inc.
Walter Investment Management Corp. (WAC)
Reverse Mortgage Solutions, Inc.
Walter Investment Management Corp. announced that it has entered into a definitive agreement to purchase Reverse Mortgage Solutions, Inc. in a transaction valued at $120.0 million. Consideration in the transaction consists of $60.0 million of cash, $25.0 million of WAC stock and a $35.0 million seller MSR note. The Company anticipates the acquisition of RMS will be significantly accretive to both earnings and cash flow, and estimates that, on a pro forma basis, the acquisition would have been accretive to 2012 core earnings per share by approximately 25% had the acquisition been completed at the beginning of this year. The $120.0 million transaction value represents a multiple of approximately 2.6x RMS' expected 2012 EBITDA, or 4.1x its 2012 expected core earnings.
Ditech Holding is a servicer and originator of mortgage loans. Co. services a range of loans across the credit spectrum for its own portfolio and for government sponsored enterprises, government agencies, third-party securitization trusts and other credit owners. Co.'s segments are: Servicing, which performs servicing for its mortgage loan portfolio and on behalf of third-party credit owners, performs subservicing for third-party owners, and operates complementary businesses including collections of post charge-off deficiency balances; and Originations, which originates and purchases mortgage loans through consumer originations, correspondent lending, and wholesale lending.
Open the WAC Page at The Online Investor »
Sell (1.00 out of 4)
(ranked higher than approx. 100% of all stocks covered)
Based on Zacks ABR data;
powered by Xignite