Tampa, Fla.-based Walter Investment Management Corp. (NYSE: WAC) has signed an agreement to acquire 100 percent of San Diego-based Security One Lending stock. The transaction is valued at approximately $31 million.
The purchase price consists of $20 million in cash and up to $11 million in additional earn-out to be paid upon the achievement by Security One of certain designated performance targets over the next 12 months.
The transaction is contingent upon the receipt or waiver of required regulatory approvals and other consents.
Security One Lending is a retail and wholesale reverse mortgage loan company. Security One is owned by management, independent investors and in part by funds managed by Jacobs Asset Management LLC.