Definitive agreement has been signed
Spring EQ has announced plans to sell its home equity financing business to an affiliate of Cerberus Capital Management. Terms of the deal were not disclosed.
Spring EQ said it has entered into a definitive agreement to be acquired by Cerberus' Residential Opportunities platform, a global investor focused on residential mortgage securities and assets. The partnership will bolster its home equity loan offerings, according to its release.
Backed by Cerberus, Spring EQ is also looking to enhance its platform through further investments in technology, new commercial efforts, and growth-based operational initiatives. Spring EQ CEO Jerry Schiano and the current management team will continue to lead the company after the acquisition.
Schiano commented: "We're incredibly proud to be helping individuals and families across the United States achieve their goals. Spring EQ has helped redefine the home equity financing process by combining exceptional digital experiences and tailored solutions. This partnership with Cerberus comes at a perfect time in our journey. The Cerberus team's mortgage expertise, technology capabilities, and operational resources will help propel our growth, better positioning us to make an even greater impact."
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"There is accelerating demand for home equity solutions, and Spring EQ is already a leader in the growing market," said Joe Steffa, managing director of Cerberus Residential Opportunities. "Amid higher interest rates and record levels of untapped residential home equity in the United States, Spring EQ is providing American homeowners a simpler, more transparent alternative to unlocking their value. We're excited to partner with Jerry and the team to deliver unparalleled experiences to customers on an expanded scale."
The deal is expected to be closed in the fourth quarter of 2023.
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