Altisource Portfolio Solutions has entered into a definitive agreement to acquire real estate and mortgage software services provider Equator for $70 million, its third major acquisition in the past few months.
Currently, the deal is valued at $70 million on closing but “with contingent earn-out consideration of up to an additional $80 million over three years,” if Equator achieves annual performance targets.
Headquartered in Luxembourg, the global $2.8 billion financial technology company that specializes in real estate, mortgage and consumer debt industries is adding Equator to
Upon closing within 30 days the acquisition combines two real estate financing technology systems that together complete a real estate life cycle management platform with SaaS solutions.
Since four of the top six U.S. mortgage servicers and government-sponsored enterprises, over 460,000 real estate agents and 20,000 service providers rely on Equator’s marketplace platform, according to Altisource, the acquisition is expected to diversify the firm’s customer base by adding some of the largest mortgage servicers and government sponsored enterprise in the U.S.
William Shepro, CEO of Altisource, said while the acquisition expands the marquee client list and provides a real estate lifecycle management platform “the Equator brand and management team are an essential part of the acquisition.”
The combined technical and financial strength of both companies, said CEO of Equator Christopher Saitta, will translate into more rapid “product innovation and responsiveness to industry changes on EQ platforms,” including its flagship REO, short sale and loss mitigation modules, which since 2003 when he founded Equator with Mark McKinley, have processed transactions totaling more than $150 billion.
