In its first deal since it went
FOA will pay the San Francisco-based company approximately $40 million, but did not disclose the composition of the compensation, including whether it would include any stock. The transaction is expected to close in the current quarter.
When FOA announced it was going public via a special purpose acquisition company merger with Replay Acquisition in October 2020, CEO Patricia Cook said she was looking to grow the company, both organically and "
Both companies originate loans through the three main channels of retail, correspondent and wholesale. FOA is making the acquisition in order to expand its work with
"Our third-party originations business is a part of our long-term growth strategy," Bill Dallas, president of the company's forward lending business, said in a press release. "We're excited about the enhanced scale this transaction provides as it will materially increase our production volume and enable us to distribute a larger number of proprietary products in the future, propelling continued growth."
FOA originated a total volume of $29.1 billion last year, including $8.8 billion in the fourth quarter and $8.4 billion in the third quarter.
The transaction was announced after the market closed on Tuesday. FOA opened trading Wednesday morning at $10.53, up $0.02 per share, and within the first half-hour climbed to its highest point since going public at $11.15 per share, before coming back down to $10.89 per share at noon.
Overall, this is the 17th acquisition for the Irving, Texas-headquartered company since it was formed in 2013. In March, FOA purchased
Other FOA businesses include
