SoFi Technologies Inc. has acquired mortgage lender Wyndham Capital Mortgage, the financial-technology company announced Monday morning.
SoFi
SOFI,
-1.24%
expects that the deal will help it “broaden its suite of mortgage products available to members, enhance unit economics, and take ownership of an intelligent and scalable platform,” according to a press release.
Chief Executive Anthony Noto added in the release that the transaction would “not only allow us to scale and keep pace with accelerated growth, but also allow us to foster that growth in a way that brings value to our members through sales and operational efficiencies.”
The company didn’t disclose financial terms in its release, but it noted that the deal was an all-cash transaction.
SoFi also said in the release that the deal is “not expected to be material to the company’s 2023 financial outlook,” though it “is expected to be accretive within six months.”
See also: SoFi CEO Noto continues to load up on stock with $1.24 million in purchases in March
“As SOFI tries to position itself as a one-stop shop for its target market (high-earners not well served), its lack of penetration on the mortgage side was clearly an area looking to be addressed by management, in our view,” Keefe, Bruyette & Woods analyst Michael Perito wrote in a note to clients following the announcement. “The company has had issues with fulfillment partners, and has otherwise struggled to make a dent in a very competitive (and now challenged) mortgage market.”
He expects that the acquisition will help SoFi boost loan volume on its platform and reduce its dependency on third-parties.
Wyndham Capital has worked with more than 100,000 borrowers since its launch over 20 years ago.
This post was originally published on Market Watch
