Seattle-based WMIH Corp. has announced a merger with Dallas-based Nationstar Mortgage Holdings Inc.
According to the companies, the operating business will retain the Nationstar Mortgage name and Dallas Headquarters and will be initially traded on the NASDAQ under the ticker symbol “WMIH”. Nationstar’s senior leadership team will helm the combined company, and the combined entity’s board of directors will consist of three members from WMIH and four from Nationstar. Upon completion of the transaction, Nationstar shareholders will own approximately 36 percent of the combined company and WMIH shareholders will own approximately 64 percent.
“Nationstar aligns perfectly with our acquisition strategy and has a strong track record of providing mortgage servicing and loan and real estate offerings in various market conditions,” said Bill Gallagher, CEO of WMIH. “Nationstar’s talented and experienced management team, best-in-class servicing platform, and continued investments in customer education and self-service position it for growth across channels and services. We look forward to working with Nationstar’s talented team to build on the Company’s strong foundation to drive growth, expand the platform and create shareholder value.”
“We expect this merger to create value for our shareholders in both the near and long-term, including immediate accretion on a cash EPS basis and a cash premium for those of our stockholders who elect to receive the cash merger consideration,” added Jay Bray, chairman and CEO of Nationstar. “I am passionately committed to continuing and accelerating our growth and investment as a leader in our industry, leveraging our best-in-class integrated servicing and originations platform.”
The transaction is anticipated to close in the second half of 2018.