Home Point Financial Corp. announced a definitive agreement to acquire Stonegate Mortgage Corp. in an all-cash transaction valued at approximately $211 million.
While the transaction is subject to certain customary closing conditions, including, among other things, approval by Stonegate Mortgage’s stockholders and regulatory approvals, it is expected to close by the end of the second quarter of 2017.
Under the terms of the agreement, Stonegate Mortgage’s stockholders will receive $8 per share.
The acquisition, if completed, would position also Home Point as a top-25 mortgage originator and servicer, according to the announcement.
Willie Newman, Ann Arbor, Michigan-based Home Point CEO, stated that as a result of the combination, the business will have full national coverage across all channels of mortgage origination, as well as vertical integration across the mortgage value chain.
“We are very excited about the opportunity to work together with the Stonegate Mortgage team to accelerate the build out of Home Point Financial,” said Newman.
Stonegate, which was founded in 2005 and based in Indianapolis, recorded a decent year in 2016. As a look back, the third-quarter 2016 was a strong one for the lender’s originations department, with its total originations hitting $2.62 billion, up 12% from the prior quarter, and total origination revenues reaching $51.8 million, up 35% from the prior quarter.
Back in August 2015, Stonegate Founder and former CEO Jim Cutillo abruptly announced he was leaving the company, serving only as a consultant over the next six months to facilitate his transition.