Michigan-based Home Point Financial Corp. has completed the $211 million acquisition of Indianapolis-based Stonegate Mortgage Corp. As a result of the cash transaction, Stonegate will no longer trade on the New York Stock Exchange.
The acquisition was announced in January and Home Point did not state whether any jobs would be affected. Home Point Chief Executive Officer Willie Newman says the deal is an "important milestone" for the company.
"Home Point will now have full coverage in all channels of origination, as well as warehouse lending offerings," said Newman. "In addition, the acquisition brings an in-house servicing platform to Home Point, giving us the ability to directly manage relationships with our customers. The most exciting part is combining the experience and talent of these two great companies in the service of our customers."
Home Point says the acquisition received overwhelming approval from Stonegate’s shareholders. As part of the deal, shareholders will receive $8 in cash for each share they own.
The closing of the acquisition comes less than a month after Stonegate released its first quarter earnings report. The company reported a net loss of $4.3 million, compared to a net loss of $37.5 million during the same period the previous year.