Rithm Capital Corp., an asset manager focused on the real estate and financial services industries, is acquiring certain affiliated companies of Computershare Limited, including Specialized Loan Servicing, for a purchase price of approximately $720 million.
The acquisition includes approximately $136 billion in unpaid principal balance (UPB) of mortgage servicing rights, of which $85 billion is third-party servicing, along with SLS’s origination services business.
Following the close of the transaction, SLS’s portfolio and operations will be transitioned to and managed by Newrez, a Rithm portfolio company.
“We are thrilled to welcome SLS to the Newrez family. Our track record of acquisitions in the mortgage servicing space continues to deliver value not only for our shareholders, but also for the millions of consumers we serve,” says Michael Nierenberg, chairman, chief executive officer and president of Rithm Capital, in a release.
“The addition of SLS continues to grow our best-in-class special servicing business and adds more clients and homeowners to the Newrez platform,” says Baron Silverstein, president of Newrez. “It further strengthens our origination and servicing channels, both of which are designed to deliver a customer experience that prioritizes a successful homeownership journey.”
“Rithm has strong mortgage industry credentials and the ability to bring capital to scale the business further. With its track record of successful M&A execution and integration, we expect a smooth transition for the business and our customers,” adds Stuart Irving, CEO and president of Computershare.
Rithm intends to finance the transaction through a mix of existing cash and available liquidity on the balance sheet, as well as additional MSR financing.
The transaction, which is expected to close in the first half of 2024, remains subject to customary closing conditions, including regulatory approvals.
