SoFi (NASDAQ:SOFI) stock opened in the green today after the company announced that it had acquired Wyndham Capital Mortgage in an all-cash transaction. The acquisition price was not immediately disclosed. Wyndham operates as a mortgage lender that has served over 100,000 borrowers since its inception more than two decades ago. The lender also has a 98% satisfaction rate among its customers.
Rumors were flying around last week that SoFi had acquired a mortgage lender. Now, these rumors have been confirmed. SoFi noted that the acquisition is “not expected to be material to the company’s 2023 financial outlook,” although it should be accretive to business operations within six months.
CEO Anthony Noto had the following to say about the deal:
“Today’s acquisition of Wyndham Capital will not only allow us to scale and keep pace with accelerated growth, but also allow us to foster that growth in a way that brings value to our members through sales and operational efficiencies and helps members get their money right when it comes to one of life’s most significant financial milestones.”
SOFI Stock: SoFi Acquires Wyndham Capital Mortgage
The acquisition of Wyndham’s digital mortgage technology will bolster SoFi’s “full stack” approach by providing the company with a more comprehensive product offering catalog. This will reduce SoFi’s reliance on “third-party partners and processes.”
Meanwhile, Noto stated in the acquisition press release that factors such as high inflation and rising mortgage rates have “ushered in a new era across the U.S. real estate market.” As a result, Noto believes that it’s now “more important than ever” for borrowers to have a trusted and reliable mortgage lender partner.
Employees of Wyndham will be eligible to integrate into SoFi’s team. The employees will work in SoFi’s lending business and assist with its Financial Services Productivity Loop (FSPL) strategy.
SoFi has been especially scrutinized since the fall of SVB Financial Group’s (OTCMKTS:SIVBQ) Silicon Valley Bank. Still, the acquisition of Wyndham could imply that business is continuing as normal for the neobank. Its rational that a company going through turmoil would not acquire another company in an attempt to preserve capital.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.