Credit Suisse First Boston has agreed to acquire SPS Holding Corp. and its subsidiary Select Portfolio Servicing Inc. (formerly known as Fairbanks) for approximately $144.4 million. CSFB will make additional future contingent payments up to approximately $39.9 million to SPS joint owners FSA Portfolio Management Inc., Greenrange Partners and PMI Group Inc. for mortgage loans currently serviced by SPS on behalf of third parties. The transaction is expected to close in the fourth quarter of 2005.
"SPS will help CSFB grow its residential mortgage businesses and cut costs by capturing servicing fees now paid to outside vendors," said Andrew Kimura, co-head of structured products trading at CSFB. "Owning an in-house servicer complements our residential mortgage growth strategy as we originate, securitize and invest in mortgages."
