Altisource Portfolio Solutions S.A. has announced that its subsidiary has entered into a definitive agreement to acquire Equator LLC. The acquisition is valued at a base price of $70 million on closing with contingent earn out consideration of up to an additional $80 million over three years, subject to Equator achieving annual performance targets. The acquisition is expected to close within 30 days and is subject to customary closing conditions.
Four of the top six U.S. mortgage servicers and government-sponsored enterprises (GSEs), over 460,000 real estate agents and 20,000 service providers rely on Equator's marketplace platform to coordinate activities associated with the management of mortgages and the purchase, management and sale of real estate.
William B. Shepro, chief executive officer of Altisource said, "The acquisition of Equator will strengthen Altisource's leading position in the real estate and mortgage industries. The acquisition expands our marquee client list and provides our customers with one of the most comprehensive real estate lifecycle management platforms and services marketplaces available. The Equator brand and management team are an essential part of the acquisition. Equator will join the Altisource family of businesses and operate within our Technology Services segment. Together, we will continue to develop innovative process management and vendor solutions across the real estate and mortgage marketplaces."
Christopher L. Saitta, chief executive officer of Equator said, "Equator and Altisource have a shared vision for enabling the real estate marketplace of the future with a common, modern technology platform that reduces friction, enhances compliance and creates transparency for all participants. Our combined technical and financial strength means that our customers can look forward to more rapid product innovation and responsiveness to industry changes on EQ platforms."