WAL - Western Alliance to acquire B2B mortgage acquirer & servicer AmeriHome

Western Alliance (WAL) traded 3.1% higher after hours post executing a definitive agreement to acquire Aris Mortgage, parent company of AmeriHome Mortgage, for an estimated purchase price of $1B in cash.For Western Alliance, the addition of AmeriHome extends its national commercial businesses with a complementary, low-risk national mortgage franchise.Transaction is estimated to produce accretion of over 30% to EPS and 500+ basis points to return on average tangible common equity in 2020.Western Alliance expects to achieve annual after-tax funding cost synergies of ~$50M with total estimated after-tax merger and integration costs of approximately $27M.Before the end of 2Q21, Western Alliance plans to raise ~$275M of primary capital through a registered public offering.Acquisition expected to close in 2Q21.AmeriHome will operate under its current brand and will continue to be led by its current president & CEO.AmeriHome is third largest correspondent mortgage acquirer in U.S, purchasing ~$65B in conventional conforming and government insured originations

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Western Alliance to acquire B2B mortgage acquirer & servicer, AmeriHome