Xome, a HousingWire Tech 100 winner and wholly-owned subsidiary of WMIH Corp., the parent company of the Nationstar Mortgage Holdings family, announced Thursday its acquisition of Assurant Mortgage Solutions.
The company acquired Assurant Mortgage Solutions from Assurant, a global provider of risk management solutions. It expands Xome’s footprint and grows its third-party client portfolio in its valuation, title and field services business.
Xome announced Assurant Mortgage’s clients will now gain access to Xome’s real estate platform.
The acquisition comes one day after Nationstar completed its merger with WMIH, the former parent company of Washington Mutual.
“We are excited the Xome team is growing with the acquisition of Assurant Mortgage Solutions,” WMIH Corp. Chairman and CEO Jay Bray said. “We’re confident that the products and expertise Assurant Mortgage Solutions brings will give our combined clients exceptional service, enhanced solutions and comprehensive end-to-end capabilities.”
“This acquisition accelerates Xome’s goals for third-party growth and brings more value to our company, valued clients and shareholders,” Bray said.
The acquisition closed on August 1, 2018 for $35 million in cash with additional consideration dependent on achieving certain future performance targets. Xome explained that with this acquisition, the majority of its revenue will be derived from third party business.
The company explained that while the acquisition is expected to increase its earnings, the 2018 earnings target is expected to remain unchanged as it integrates the new platform. The acquisition is expected to increase company earnings in 2019.
According to Assurant, the deal includes all of its mortgage solutions business including title, valuations, mortgage technology and field services.
The company said that "nearly all" of its mortgage solutions’ employees will join Xome.
“Successful execution of our profitable growth strategy requires us to align resources with our best opportunities,” said Michael Campbell, president of Assurant Global Home."
"Our sale of the Mortgage Solutions business is driven by our ongoing desire to focus on lines of business where we have leadership positions, as well as to strengthen our offerings and capabilities in lender-placed homeowners insurance, multifamily housing, and the connected home. Assurant will work closely with Xome to ensure a smooth transition of the business for its clients, employees and business partners,” Campbell added.
“In recent years, the Mortgage Solutions business has gone through a transformation in processes and technology,” Campbell continued. “The acquisition by Xome is a natural fit for the Mortgage Solutions product portfolio and will give the business the scale it needs to reap the benefits of those investments.”