Stonegate Mortgage shares rose to their highest level since September 2015 on Friday after the provider of residential mortgages said it has agreed to be acquired by Home Point Financial Corporation for $8 per share or $211 million.
The price is a 34% premium to the closing price on Jan. 26. SMG was up 30% at $7.72 recently, having earlier traded as high as $7.81. The 52-week low is at $3.16.
“The combined business will have full national coverage across all channels of mortgage origination, as well as vertical integration across the mortgage value chain,” Home Point CEO Willie Newman said. “Most important, the talent and experience of the combined team will give us the ability to fulfill Home Point’s vision of being a leader in mortgage banking and financial services.”