Loan servicer Ocwen Financial Corp will purchase Homeward Residential Holdings Inc from private equity firm WL Ross & Co LLC in a deal valued at about $750 million. Ocwen will pay $588 million in cash and offer $162 million convertible stock to buy the company, which services 422,000 mortgage loans, it said in a statement.The deal is expected to immediately add to Ocwen's earnings.Ocwen shares were up 3 percent in trading before the bell. They closed at $28.96 on Tuesday on the New York Stock Exchange.
Ocwen Financial Corporation (Ocwen), through its subsidiaries, is a provider of residential and commercial mortgage loan servicing, special servicing and asset management services. Shares of OCN remained unchanged at $28.96. In the past year, the shares have traded as low as $11.72 and as high as $29.13. On average, 1561780 shares of OCN exchange hands on a given day and today's volume is recorded at 3473.
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