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Australia : YELLOW BRICK ROAD takes over RESI MORTGAGE CORPORATION for $36 MILLION

July 10, 2014



Yellow Brick Road declared that it has taken over RESI Mortgage Corporation, a privately-owned mortgage manager in a deal for $36 million, strengthening its footprint in the home loan market.

The acquisition is subject to YBR shareholder and regulatory approval.

The offer comprises $28 million in cash combined with $5.5 million in YBR shares. A deferred payment of up to $2.5 million in cash will follow on the first anniversary of settlement provided certain earn-out conditions are satisfied.

While filing at the Australian Securities Exchange (ASX), YBR executive chairman Mark Bouris stated that, We welcome the Resi franchisees, management and staff to the YBR group and look forward to leveraging our marketing platforms to significantly increase Resi's lead flow as part of our combined group.

Bouris said, The complementary skills and relative strengths of the YBR, Vow and Resi brands and businesses will combine to provide Resi franchisees, YBR Branch licensees and Vow brokers with unparalleled opportunities to build revenues and market position as we progress our strategy to be a leader in the "non-bank" sector.

Resi will provide YBR with enhanced scale as well as national presence in its mortgage distribution channel, said Bouris with expectation that, the acquisition will bring significant opportunities for YBR to grow its suite of financial services products and services through Resi's existing network.


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Source: TendersInfo (India)


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