Digital lending software company Blend entered a definitive agreement with Mr. Cooper Group, Inc. to acquire Title365. With the pending acquisition, Blend is looking to help financial institutions more efficiently and effectively engage with consumers across a fully integrated homebuying process, according to a press release.
"Since its inception, Blend has been on a mission to create a simpler, more transparent, more accessible financial services ecosystem with the power to help more people reach their financial goals, like purchasing a home," said Blend co-founder and CEO Nima Ghamsari. "Title and settlement are manual, time-consuming processes for consumers and lenders, and by bringing all parties into the same automated platform we can vastly improve the experience. With an intense focus on its customers and operational efficiency, Title365 is the right match to help us scale our efforts and make an immediate impact in that space."
The new capabilities will include a closing and settlement experience and a marketplace of title agencies, including TitleVest. Title365's services will be integrated with Blend's cloud-based platform.
The Title365 team, which President Kristen Estrella will continue to lead across its U.S. and India offices, will join Blend once the acquisition closes.
"Traditionally, purchasing a home has been riddled with various complexities, requiring many steps and third-party participants," said Estrella. "Together we have the power to simplify the process for real estate agents, lenders and servicers, insurers, and others, by leveraging our industry expertise to offer a seamless experience for consumers."
Pursuant to the terms of the transaction, Blend will acquire Title365 for approximately $422 million, reflecting an enterprise value of $500 million, less approximately $31 million in adjustments, and reflecting a 9.9% ownership interest retained by Mr. Cooper Group. The transaction is subject to regulatory approvals and customary closing conditions and is expected to close in the second quarter of 2021.
