We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Mr. Cooper Group (COOP) Inks Deal Worth $500M With Blend Labs
Read MoreHide Full Article
Mr. Cooper Group Inc. (COOP - Free Report) has signed a definitive agreement to dispose of its title business Title365 to Blend Labs, Inc. for a consideration of $500 million.
The amount comprises $450 million cash and a retained interest of 9.9%, subject to adjustments. The deal is expected to close in the second quarter of 2021, subject to necessary approvals.
Blend's technology platform and Title365's operational proficiency in title, escrow, and settlement will assist financial institutions more methodically and effectually engage with consumers through a fully integrated homebuying journey.
Shares of Mr. Cooper Group have inched up 3.8%, post the above announcement.
Deal Details
Per the agreed terms, Title365 will retain all the cash collected between the day of announcement and the closing for the acquirer’s benefit. Mr. CooperGroup does not expect any benefit to its earnings in the second quarter.
Also, Kristen Estrella, president of Title365, will continue to oversee its U.S. and India offices and will join Blend along with the Title365 team once the acquisition closes.
Notably, Goldman Sachs & Co. LLC, a unit of Goldman Sachs (GS - Free Report) , acted as the financial advisor of Blend Labs while Houlihan Lokey was the financial advisor to Mr. Cooper Group.
Benefits of the Deal
Mr. Cooper Group expects the deal to be accretive and record an after-tax gain of about $350 million along with cash proceeds, net of transaction costs and cash taxes, of nearly $400 million, upon the deal closure.
Management is pleased with the terms of the transaction and believes that the sale will enhance the company’s liquidity and tangible book value, apart from enhancing its shareholder value.
The company chairman and CEO said, “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.”
In the past six months, shares of Mr. Cooper Group have soared 72.7% compared with the 63.6% rally of the industry it belongs to.
There is a constant rise in restructuring activities in the finance sector. Recently, to strengthen its private bank and wealth management offerings, SVB Financial Group inked a stock-cum-cash deal to acquire Boston Private Financial Holdings, Inc. .
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Image: Bigstock
Mr. Cooper Group (COOP) Inks Deal Worth $500M With Blend Labs
Mr. Cooper Group Inc. (COOP - Free Report) has signed a definitive agreement to dispose of its title business Title365 to Blend Labs, Inc. for a consideration of $500 million.
The amount comprises $450 million cash and a retained interest of 9.9%, subject to adjustments. The deal is expected to close in the second quarter of 2021, subject to necessary approvals.
Blend's technology platform and Title365's operational proficiency in title, escrow, and settlement will assist financial institutions more methodically and effectually engage with consumers through a fully integrated homebuying journey.
Shares of Mr. Cooper Group have inched up 3.8%, post the above announcement.
Deal Details
Per the agreed terms, Title365 will retain all the cash collected between the day of announcement and the closing for the acquirer’s benefit. Mr. CooperGroup does not expect any benefit to its earnings in the second quarter.
Also, Kristen Estrella, president of Title365, will continue to oversee its U.S. and India offices and will join Blend along with the Title365 team once the acquisition closes.
Notably, Goldman Sachs & Co. LLC, a unit of Goldman Sachs (GS - Free Report) , acted as the financial advisor of Blend Labs while Houlihan Lokey was the financial advisor to Mr. Cooper Group.
Benefits of the Deal
Mr. Cooper Group expects the deal to be accretive and record an after-tax gain of about $350 million along with cash proceeds, net of transaction costs and cash taxes, of nearly $400 million, upon the deal closure.
Management is pleased with the terms of the transaction and believes that the sale will enhance the company’s liquidity and tangible book value, apart from enhancing its shareholder value.
The company chairman and CEO said, “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.”
In the past six months, shares of Mr. Cooper Group have soared 72.7% compared with the 63.6% rally of the industry it belongs to.
There is a constant rise in restructuring activities in the finance sector. Recently, to strengthen its private bank and wealth management offerings, SVB Financial Group inked a stock-cum-cash deal to acquire Boston Private Financial Holdings, Inc. .
Currently, Mr. Cooper Group currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
AccessZacks Top 10 Stocks for 2021 today >>