Blend to Acquire Title365 from Mr. Cooper Group in $500M Deal
March 18, 2021
Digital lending software company Blend has entered into a definitive agreement with Mr. Cooper Group to acquire Title365 in a deal valued at near $500 million.
Pursuant to the terms of the transaction, Blend will acquire Title365 for approximately $500 million, minus $31 million in adjustments and a 9.9 percent 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.
"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."
Blend's work to build a single, cloud-based platform to power the full consumer homebuying journey began in 2018 with the launch of its homeowner's insurance offering. In 2020, the company launched its digital closing solution, Blend Close, which is used by lenders such as U.S. Bank, BMO Harris Bank, First Horizon Bank and Nationwide Mortgage Bankers.
According to a release, Blend said adding Title365 will result in a digital homebuying journey that drives efficiency and cost savings for all parties by integrating title and settlement into the loan process. 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,” Estrella said. “We're thrilled to be joining forces with Blend to continue the great work Title365 has already done. 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."
Title365, which was founded in 2009 by a group of settlement service veterans to offer a combination of centralized product fulfillment, including title, escrow and default services, is a division of Xome, a real estate services company providing integrated end-to-end solutions. In 2014, Solutionstar Holdings LLC, an indirect wholly-owned subsidiary of Nationstar Mortgage Holdings, purchased Title365 for $36 million. In 2017, Stewart Information Services acquired the retail branch division of Title365 Company. Title365’s retail division operates primarily in Southern California.
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