SYDNEY, AUSTRALIA: Computershare, a share registry company, has agreed to sell its U.S. mortgage services business to Rithm Capital, an asset manager, for $720 million.
The deal will allow Computershare to focus on its core businesses, which have higher returns and lower capital intensity. Rithm Capital will acquire Specialised Loan Servicing (SLS), a mortgage subservicer with a portfolio of $136 billion in unpaid principal balance.
SLS will be integrated with Newrez, a Rithm portfolio company that provides mortgage lending and servicing solutions. Computershare’s shares rose to their highest level in more than nine months after the announcement.
The deal is expected to close in the fourth quarter of fiscal 2024 and boost Computershare’s earnings per share in the first year. Computershare will also record a one-off pre-tax loss of up to $180 million from the divestment. Rithm Capital said the deal will expand its special servicing business and add more clients and homeowners to the Newrez platform.