Tampa, Fla.-based Walter Investment Management Corp. has announced a definitive agreement to acquire 100% of the stock of San Diego-based reverse mortgage originator Security One Lending in a transaction valued at up to $31 million.
According to Walter Investment, the purchase price consisted of $20 million in cash paid at the time of the signing which took place on Monday, and up to an $11 million additional earn out to be paid upon the achievement by Security One of ‘certain designated performance targets’ over the next 12 months.Â
The acquisition is Walter Investment's latest foray into the reverse mortgage space. Last September, the company acquired Reverse Mortgage Solutions (RMS), based in Spring, Texas.
‘We are extremely pleased to add the Security One business to the Walter Investment portfolio,’ says Mark J. O'Brien, chairman and CEO of Walter Investment. ‘This addition is a key step in achieving our previously stated goal to increase the retail mix of RMS' originations business.’