Altisource Portfolio Solutions S.A. has disclosed an agreement to make an acquisition that could cost it up to $150 million.
The Luxembourg-based company announced Wednesday that it has reached an agreement to acquire Equator LLC.
The base price of the deal is valued at $70 million at closing, according to Wednesday’s news release.
In addition, there is a contingent earn out consideration of up to an additional $80 million over three years. The additional amount is subject to Equator’s achieving annual performance targets.
The transaction is expected to close within 30 days subject to customary closing conditions.
Equator operates a widely used transaction platform and provides software services for distressed lending and REO sales. Transaction volume reportedly exceeds $150 billion.
The announcement said that four out of the top six mortgage servicers and government-sponsored enterprises rely on Equator’s marketplace platform. In addition, more than 460,000 real estate agents and 20,000 servicers providers are also users.
“The acquisition will strengthen Altisource’s position as a market leader for real estate lifecycle management technologies and marketplace services and will diversify its customer base by providing software solutions to the largest mortgage servicers and government sponsored enterprise in the U.S.,” the statement said.
