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reAlpha closes InstaMortgage acquisition for $8.5M
The deal, closed Aug. 19, expands reAlpha’s in-house mortgage origination, underwriting and funding footprint across 38 states and Washington, D.C.
reAlpha Tech says it has completed its acquisition of InstaMortgage, closing the transaction on Aug. 19 for about $8.5 million, including closing adjustments. HousingWire reports the amended and restated merger agreement calls for consideration split between $500,000 in cash, $1.5 million in reAlpha common stock issued at closing, and up to $6.5 million in deferred consideration payable in semiannual installments over three years.
The acquisition is designed to bring mortgage lending functions in-house for reAlpha, while the company will continue to provide mortgage brokerage services. Under the deal terms, reAlpha expects to originate, underwrite and fund mortgages directly across 38 states and Washington, D.C., HousingWire reported.
reAlpha and InstaMortgage also waived a closing condition tied to two outstanding state regulatory approvals after receiving other required approvals. HousingWire notes the two remaining states represent about 0.8% and 20.5% of InstaMortgage’s loan origination volume, and the waiver allows reAlpha to begin integrating InstaMortgage while those applications remain pending.