Ocwen Financial Corp. shares jumped more than 11% late Tuesday after the company said it had entered an agreement to acquire PHH Corp. for $360 million in cash. The purchase price would represent a 35% discount to PHH’s GAAP book equity on Dec. 31, and Ocwen would also assume PHH’s debt around $120 million. “Ocwen projects that the increased size and scale of the combined company should create various strategic and financial benefits,” including reducing cots and improved margins through economies of scale, the company said. The deal is expected to close in the second half of the year. Shares of PHH rallied 24%. The stocks ended the regular trading session down 2.3% and 3.6%.
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