Mr. Cooper Group Announces Sale of Title365 for $500 Million
15 März 2021 - 02:00PM
Business Wire
Today Mr. Cooper Group Inc. (“Mr. Cooper Group”) announced the
signing of a definitive agreement to sell its title business, which
operates under the brand name Title365, to Blend Labs, Inc. for
$500 million, consisting of $450 million in cash and a retained
interest of 9.9%, subject to certain adjustments. The sale is
expected to close in the second quarter of 2021, subject to
customary conditions including regulatory approval. As part of the
transaction, Title365 will retain all cash generated between today
and closing for the benefit of the acquirer and as such is not
expected to contribute to Mr. Cooper Group's earnings in the second
quarter. Mr. Cooper Group expects to record an after-tax gain of
approximately $350 million and receive cash proceeds net of
transaction costs and cash taxes of approximately $400 million upon
closing.
“The Title365 team has produced outstanding results, which
contributed to Mr. Cooper Group’s strong profitability and
operating momentum over the last year,” said Jay Bray, Chairman and
CEO of Mr. Cooper Group. “This decision follows a comprehensive
strategic review in which we determined that Title365 would gain
greater investor credit as part of a company like Blend, where it
will have a significant strategic impact. This decision allows Mr.
Cooper Group to focus on the growth and profitability potential
within our core business of servicing and originations.”
Mr. Cooper Group Vice Chairman and CFO Chris Marshall added,
“We’re pleased with the terms of the transaction which, once
closed, will add meaningfully to our liquidity and tangible book
value, and should reinforce our strong commitment to generating
shareholder value.”
Wachtell, Lipton, Rosen & Katz acted as legal advisor to Mr.
Cooper Group and Houlihan Lokey acted as financial advisor to Mr.
Cooper Group.
About Mr. Cooper Group
Mr. Cooper Group Inc. (NASDAQ: COOP) provides quality servicing,
origination and transaction-based services related principally to
single-family residences throughout the United States with
operations under its primary brands: Mr. Cooper® and Xome®. Mr.
Cooper is one of the largest home loan servicers in the country
focused on delivering a variety of servicing and lending products,
services and technologies. For more information, visit
www.mrcoopergroup.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20210315005425/en/
Investor Contact: Kenneth Posner, SVP Strategic Planning and
Investor Relations (469) 426-3633 Shareholders@mrcooper.com
Media Contact: Christen Reyenga, VP Corporate Communications
MediaRelations@mrcooper.com
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