M&A · Financials · Mortgage Bankers & Loan Correspondents
Mr. Cooper Group Inc. to acquire Home Point Capital Inc.
Announced May 11, 2023 · Closed Aug 1, 2023
Deal value$322M
Premium26.6%To unaffected price
EV / Adj. EBITDA—
ConsiderationAll cash$2.33 per share
Transaction
- Acquirer
- Mr. Cooper Group Inc.
- Target
- Home Point Capital Inc.
- Buyer type
- Strategic
- Offer price per share
- $2.33
- Enterprise value
- —
- Status
- Closed Aug 1, 2023
Deal protections
- Break fee (target pays)
- $9.7M · 3.0%
- Reverse fee (buyer pays)
- $34.6M · 10.7%
- Go-shop
- No-shop
- Financing
- No financing condition
Advisors
- To the acquirer
- Not disclosed
- To the target
- Houlihan Lokey
Sector context · Financials
- Comparable deals
- 75 in the prior 24 months
- Premium
- 26.6% vs. 29.7% sector median
- EV / Adj. EBITDA
- Sector median 24.7x
- Break fee
- 3.0% vs. 3.5% sector median
Timeline
- AnnouncedMay 11, 2023
- Tender offerMay 26, 2023
- ClosedAug 1, 2023
Valuation · fairness opinions
Trading comparables$1.86$2.53
Precedent transactions$2.03$2.70
Discounted cash flow$1.60$2.23
Discounted cash flow$1.42$2.03
Offer $2.33
Implied value per Home Point Capital Inc. share by analysis, from Houlihan Lokey · DCF discount rate 12%–15%.