Walker & Dunlop, Inc. on June 8 entered into a definitive agreement to acquire CWCapital LLC, an operating subsidiary of CW Financial Services LLC.
The purchase price will total $220 million, $80 million in cash and about $140 million in Walker & Dunlop stock. Upon the transaction’s close, CW Financial will become the company’s largest shareholder.
CWCapital is a lender to the multifamily, healthcare and commercial real estate industries with in-house origination capabilities for Fannie Mae, Freddie Mac, HUD, life insurance companies and conduits. CWCapital originated $3.7 billion of loans in 2011. Founded in 1972 in Needham, Mass., CWCapital currently has about 180 employees, services $16.8 billion in commercial mortgages and has closed more than $20 billion in commercial real estate financing since 1994. Michael Berman, chief executive officer of CWCapital, will take a senior leadership role at Walker & Dunlop.