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Apollo Global (APO), Athene to Sell AmeriHome to Western Alliance
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Recently, Apollo Global Management (APO - Free Report) and Athene Holding jointly decided to sell Aris Mortgage Holding Company, LLC — the parent company of AmeriHome Mortgage Company — to a subsidiary of Western Alliance Bancorporation (WAL - Free Report) .
The all-cash deal, worth $1 billion, reflects 1.4x adjusted tangible book value based on the Dec 31, 2020 financials. The transaction is anticipated to close by the second quarter of 2021, subject to all regulatory approvals.
Apollo Global and Athene have been valuable partners in nurturing AmeriHome from a mere start-up in 2013 to one of the leading mortgage originators and servicers of the United States. AmeriHome’s growth story has seen a rising trajectory as its volume grew to $64.5 billion in 2020 from $18.7 billion in 2015. Its servicing portfolio too surged from $18.9 billion to $98.8 billion during the same frame.
Terms of the Deal
Per the agreement, AmeriHome will be established as a subsidiary of Western Alliance Bank. Also, Western Alliance Bank will pay $275 million cash consideration plus adjusted tangible book value at close for an estimated $1-billion consideration.
Once the transaction concludes, AmeriHome will function under its current brand — AmeriHome — a Western Alliance Bank company, and will continue being headed by Jim Furash, its current president and chief executive officer. The addition of AmeriHomeis expected to help Western Alliance expand its national commercial business with a less risky, national mortgage franchise. From a financial perspective too, the deal is assessed to establish more than 30% accretion to Western Alliance’s earning per share and more than 5% to return on average tangible common equity in 2022.
Houlihan Lokey Capital, Inc. and Wells Fargo Securities, LLC, a subsidiary of Wells Fargo & Company (WFC - Free Report) , acted as financial advisors to AmeriHome on this deal.
Over the past year, Apollo Global’s shares have rallied 6.1%, underperforming the industry’s growth of 26.7%.
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Apollo Global (APO), Athene to Sell AmeriHome to Western Alliance
Recently, Apollo Global Management (APO - Free Report) and Athene Holding jointly decided to sell Aris Mortgage Holding Company, LLC — the parent company of AmeriHome Mortgage Company — to a subsidiary of Western Alliance Bancorporation (WAL - Free Report) .
The all-cash deal, worth $1 billion, reflects 1.4x adjusted tangible book value based on the Dec 31, 2020 financials. The transaction is anticipated to close by the second quarter of 2021, subject to all regulatory approvals.
Apollo Global and Athene have been valuable partners in nurturing AmeriHome from a mere start-up in 2013 to one of the leading mortgage originators and servicers of the United States. AmeriHome’s growth story has seen a rising trajectory as its volume grew to $64.5 billion in 2020 from $18.7 billion in 2015. Its servicing portfolio too surged from $18.9 billion to $98.8 billion during the same frame.
Terms of the Deal
Per the agreement, AmeriHome will be established as a subsidiary of Western Alliance Bank. Also, Western Alliance Bank will pay $275 million cash consideration plus adjusted tangible book value at close for an estimated $1-billion consideration.
Once the transaction concludes, AmeriHome will function under its current brand — AmeriHome — a Western Alliance Bank company, and will continue being headed by Jim Furash, its current president and chief executive officer.
The addition of AmeriHomeis expected to help Western Alliance expand its national commercial business with a less risky, national mortgage franchise. From a financial perspective too, the deal is assessed to establish more than 30% accretion to Western Alliance’s earning per share and more than 5% to return on average tangible common equity in 2022.
Houlihan Lokey Capital, Inc. and Wells Fargo Securities, LLC, a subsidiary of Wells Fargo & Company (WFC - Free Report) , acted as financial advisors to AmeriHome on this deal.
Over the past year, Apollo Global’s shares have rallied 6.1%, underperforming the industry’s growth of 26.7%.
Currently, Apollo Global carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
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Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
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