(By Balaseshan) Walker & Dunlop Inc. (NYSE: WD), a commercial real estate financial services provider, has agreed to buy CWCapital LLC for $220 million.
The purchase price comprises of $80 million in cash and about $140 million in Walker & Dunlop stock, subject to potential adjustment based on changes in the Company's stock price pending closing.
CWCapital, a leading lender to the multifamily, healthcare and commercial real estate industries, is a subsidiary of CW Financial Services LLC, which is wholly owned by affiliates of asset manager Fortress Investment Group LLC (NYSE:FIG).
The transaction is expected to close within 90-120 days and is subject to stockholder, governmental and regulatory approvals. Upon the transaction's close, it is expected that CW Financial will become the company's largest shareholder.
After the deal closes, CWCapital Chief Executive Michael Berman, will take a senior leadership role at Walker & Dunlop. CWCapital, which was founded in 1972 in Needham, MA, currently has about 180 employees, services $16.8 billion in commercial mortgages, and has closed over $20 billion in commercial real estate financing since 1994.
For the latest first quarter, Walker & Dunlop's loan originations grew 33% to $674.5 million and revenue increased 19% to $34.4 million.
FIG closed Thursday's regular session down 1.93% at $3.05. The stock has been trading between $2.67 and $5.06 for the past 52 weeks.