The following excerpt is from the company's SEC filing.
Dallas, TX (March 15, 2021)
- Today Mr. Cooper Group, Inc. (Mr. Cooper) announced the signing of a definitive agreement to sell
its title business, which operates under the brand name Title365, to Blend Labs, Inc. for $500 million, consisting of $450 million in cash and a retained interest of 9.9%, subject to certain adjustments. The sale is expected to close in
the second quarter of 2021, subject to customary conditions including regulatory approval. As part of the transaction, Title365 will retain all cash generated between today and closing for the benefit of the acquirer and as such is not expected tocontribute to Mr. Coopers earnings in the second quarter. Mr. Cooper Group expects to record an
gain of approximately $350 million in first quarter 2021 and receive cash proceeds
net of transaction costs and cash taxes of approximately $400 million upon closing.
The Title365 team has produced outstanding results, which
contributed to Mr. Cooper Groups strong profitability and operating momentum over the last year, said Jay Bray, Chairman and CEO of Mr. Cooper Group. 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 Labs, 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.
Mr. Cooper Group Vice Chairman and CFO Chris Marshall added, Were pleased with
the terms of the transaction which, once closed, will add meaningfully to our liquidity and tangible book value, and should reinforce our strong commitment to generating shareholder value.
Wachtell, Lipton, Rosen & Katz acted as legal advisor to Mr. Cooper Group and Houlihan Lokey acted as financial advisor to Mr. Cooper
About Mr. Cooper Group
Group Inc. (NASDAQ: COOP) provides quality servicing, origination and transaction-based services related principally to single-family residences throughout the United States with operations under its primary brands: Mr. Cooper
. Mr. Cooper is one of the largest home loan servicers in the country focused on delivering a variety of servicing and
lending products, services and technologies. For more information, visit www.mrcoopergroup.com.
Kenneth Posner, SVP Strategic Planning and Investor Relations
Christen Reyenga, VP Corporate Communications
The above information was disclosed in a filing to the SEC. To see the filing, click here.
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