Digital financial services company SoFi Technologies has acquired Wyndham Capital Mortgage, the company announced in a press release.
SoFi is a financial services company that offers a lending arm, as well as a financial technology stack.
SoFi’s acquisition includes both talent and technology, allowing the company to expand the mortgage products available to its members. By integrating Wyndham’s scalable digital mortgage platform, the company is taking on a “full stack” approach that allows it to rely less on third-party partners and processes, according to company leaders.
“At SoFi, we’re on a mission to help people get their money right, and purchasing a home is often one of, if not the, biggest financial decisions individuals make in their lives,” said Anthony Noto, SoFi CEO.
“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.”
The terms of the deal were not disclosed. The all-cash transaction is not expected to be material to the company’s 2023 financial outlook but should be accretive within six months.
The company’s stock jumped 6% last week as rumors surrounding the acquisition spread online. SoFi has recently faced questions about its stability, including its problematic cash-to-debt ratio.
Josh Enomoto, writing for InvestorPlace, suggested that an all-cash deal “may be more favorable for SOFI stock in terms of sustaining its recent rally.”
Wyndham has secured loans for 100,000 borrowers in the last two decades, according to company leaders.
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