Published on 11 May 2023 on Zacks via Yahoo Finance
How Will Home Point Acquisition Benefit Mr. Cooper (COOP)?
Mr. Cooper Group Inc. COOP agreed to acquire Home Point Capital Inc.’s HMPT all outstanding shares for around $324 million in cash. Per the deal, the acquirer is expected to assume Home Point’s outstanding 5% senior notes, which are due in February 2026. It will likely serve as a low-cost funding source.
The deal is expected to close in the third quarter of this year. After the Home Point customers are onboarded and the deal concludes, Mr. Cooper is expected to shut down the acquiree’s remaining operations.
The move is expected to boost COOP’s customer base, which was at 4.1 million in the first quarter. The company focuses on reducing concentration risks, enabling it to generate lucrative risk-adjusted returns. The latest deal is in line with this strategy and is expected to enhance Mr. Cooper’s servicing portfolio with Home Point’s $84 billion portfolio.