FOA - Finance of America surges after deal to acquire assets of American Advisors

• Finance of America Cos. ( NYSE: FOA ) jumped 19% after the company agreed to acquire all the assets of reverse mortgage lender American Advisors Group.
• The deal for American Advisors consists of cash and equity, according to a statement on Wednesday. The purchase is expected to be accretive to both tangible book value and earnings per share. The transaction is expected to close in the fist half of next year.
• FOA’s subsidiary, Finance of America Reverse LLC, will operate a separate direct-to-consumer retail channel under the brand name AAG.
• In support of the deal, existing stockholders of Finance of America ( FOA ), including entities affiliated with Brian L. Libman, the company’s chairman and founder, committed to invest an additional $30 million of capital into the company through a private placement of FOA’s common stock.
• FOA short interest is 4.8%.
• Finance of America ( FOA ) reported Q3 results last month.

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