J.G. Wentworth Co. has reached an agreement to acquire WestStar Mortgage in a cash and stock deal.
The Radnor, Pa.-based purchaser of structured settlement payments on Tuesday bought the privately held residential mortgage company that specializes in originating conventional, VA and FHA loans for $54 million in cash. J.G. Wentworth also obtained Class A common stock in this transaction, which is pending regulatory approval but expected to close in the third quarter.
WestStar will join J.G. Wentworth as a newly rebranded division under the name J.G. Wentworth Home Lending. WestStar originated $1.5 billion last year, according to a press release, in which half of this total was securitized to government-backed organizations and the rest was sold to third-party institutional investors in the secondary market.
The current management team at WestStar will join J.G. Wentworth Home Lending, based in Woodbridge, Va.
The deal will be accretive to adjusted net income by 15% to 20% on an ongoing basis, J.G. Wentworth said in the release.
K&L Gates, KPMG and Reed Smith advised J.G. Wentworth. WestStar was advised by Houlihan Lokey and SheppardMullin.
