Walter Investment Management to Buy Security One Lending for $31M

Walter Investment Management Corp. WAC ("Walter Investment" or the "Company") announced the signing on December 31, 2012 of a definitive agreement to acquire 100% of the stock of Security One Lending ("S1L") in a transaction valued at up to $31 million.  The purchase price consists of $20 million in cash paid at the time of signing and up to an $11 million additional earn out to be paid upon the achievement by S1L of certain designated performance targets over the next twelve months.  Closing is contingent upon the receipt or waiver of required regulatory approvals and other consents.  Based on a full $31 million purchase price and estimated results pro forma for expected synergies with the Company's Reverse Mortgage Solutions subsidiary ("RMS"), the acquisition represents a 2x multiple of 2012 EBITDA and approximately 1x 2013 estimated EBITDA. The transaction is expected to be immediately accretive to Walter Investment.