Western Alliance to buy mortgage lender AmeriHome for $1 billion

(Reuters) – Western Alliance Bancorp said on Tuesday it would buy AmeriHome for about $1 billion in an all-cash deal to strengthen its mortgage business.

AmeriHome had filed for an initial public offering in October, but did not price its shares.

Mortgage firms have struggled to attract investors to share offerings despite bumper activity in 2020 as consumers took advantage of historically low interest rates to refinance existing home loans.

Earlier this month, mortgage lender loanDepot Inc cut its IPO size to less than a fifth of what it had originally planned.

Founded in 2013, AmeriHome has generated positive net income every month since achieving profitability in February 2015, its filing in October showed.

Evercore and Guggenheim Securities were the financial advisers to Western Alliance on the deal, which is expected to close in the second quarter of 2021. Houlihan Lokey Capital and Wells Fargo Securities advised AmeriHome.

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