Nationstar Mortgage Holdings has announced that it will merge with the former parent company of Washington Mutual.
WMIH Corp., which identifies itself as a company focused on acquisitions in the financial-institutions sector. will acquire Nationstar in a $3.8 billion deal. The operating business will retain the Nationstar mortgage name and Dallas headquarters, according to Nationstar. Nationstar’s employees will join the combined company, which will be led by the servicing giant’s leadership team.
“Nationstar aligns perfectly with our acquisition strategy and has a strong track record of providing mortgage servicing and loan and real estate offerings in various market conditions, WMIH CEO Bill Gallagher said. “…The combined company is expected to benefit from WMIH’s platform and financial attributes, which are expected to enhance free cash flow available to suppor business growth and be accretive to shareholders’ equity.”
“We expect this merger to create value for our shareholders in both the near and long term, including immediate accretion on a cash EPS basis and a cash premium for those of our stockholders who elect to receive the cash merger consideration,” said Nationstar CEO Jay Bray.
Under its Mr. Cooper brand, Nationstar is the largest non-bank servicer in the US.
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