China Investor Buys Florida Processing Services Firm
Chardan 2008 China Acquisition Corp. (CACA) signed a definitive agreement to enter into a business combination with DAL Group, to create one of Florida’s largest mortgage processing services firms. Chardan, a Beijing-based investment firm, will be sole owner of the business and operations of Default Servicing, Inc. (DSI) and Professional Title & Abstract Company of Florida (PTA) and the non-legal operations supporting the foreclosure and other legal proceedings handled by the Law Offices of David J. Stern, P.A. (DJS). Chardan will change its name to DJSP Enterprises and expects to continue to trade on the NASDAQ exchange under the symbols DJSP, DJSPU, and DJSPW. The Florida company increased revenue from $40m in 2006 to $199m in 2008. It also had revenues of approximately $117m for the 6 months ended June 30 and an adjusted pro forma net income for that period of $22m. HousingWire sources claim the deal is worth $180m. DJSP Enterprises will offer processing services for mortgages, mortgage defaults, title searches and abstracts, real estate owned (REO) properties, loan modifications, title insurance, loss mitigation, bankruptcy, related litigation and other services. New York City-based investment bank Rodman & Renshaw provided merger and acquisition advisory services to Chardan for the deal. Write to Austin Kilgore.