Deutsche Bank (XETRA: DBKGn.DE / NYSE: DB) today announced the completion of the acquisition of MortgageIT Holdings, Inc., a residential mortgage real estate investment trust (REIT), for $14.75 in cash per share of common stock, or $430 million (EUR 324 million). The acquisition is expected to be accretive to earnings in 2007 and will add significant scale and synergies to Deutsche Bank’s US residential mortgage business.
MortgageIT will become a part of Deutsche Bank’s Residential Mortgage Backed Securities group and Doug Naidus, CEO of MortgageIT, will become a Managing Director and Head of Mortgage Origination within the group. The acquisition is the latest in a series of investments Deutsche Bank has made in the US mortgage markets. Last year, the Bank acquired Chapel Funding, a mortgage originator, and entered into a joint venture with the Hispanic National Mortgage Association to provide loans to Hispanic and immigrant borrowers.
"As a leader in the US fixed income markets with a strong and growing residential mortgage business, adding a top mortgage originator like MortgageIT is a compelling strategic fit for our business," said Phil Weingord, Head of Global Markets in the Americas. “Expanding our origination platform provides us with access to a steady source of product for distribution into the mortgage capital markets.”
“I am very enthusiastic about the possibilities afforded by this combination of two entrepreneurial groups,” said Doug Naidus. “Uniting our origination capabilities with Deutsche Bank’s structuring and capital markets expertise positions us well to grow our business in a wide range of market conditions.”
MortgageIT Holdings owns MortgageIT, Inc., a residential mortgage lender that employs approximately 2,100 people in 47 branches, and is licensed to originate residential mortgage loans in all 50 states. MortgageIT is one of the fastest-growing and largest residential mortgage loan originators in the US.
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