American Advisors Group to be acquired by Finance of America Companies
Finance of America Companies (FOA), a specialty finance and solutions platform, has agreed to acquire assets of American Advisors Group (AAG), a direct-to-consumer reverse mortgage lender.
The consideration will be a combination of cash and equity, said Finance of America Companies.
Graham A. Fleming — Finance of America Companies President and Interim CEO said: “We believe home equity will be an increasingly important asset for Americans to consider in order to supplement their incomes, especially in retirement.
“We are confident that our expansion into this direct-to-consumer retail channel will position us to further educate, grow and service this market while driving enhanced value and opportunities for our customers, employees, partners and investors.”
Post-acquisition, Finance of America Companies’ subsidiary — Finance of America Reverse will operate a distinct direct-to-consumer retail channel under the AAG brand name, whose ads presently reach more than 10 million consumers annually in multiple ways, including the use of Tom Selleck, a celebrity spokesperson.
The deal, which is contingent on regulatory approvals and customary closing conditions, is likely to close in the first half of 2023.
In support of the deal, existing stockholders of Finance of America Companies, including entities affiliated with the company’s chairman and founder Brian L. Libman, have pledged to invest a further $30 million of capital into it. This will be via a private placement of Finance of America Companies’ common stock.
Kristen Sieffert — Finance of America Reverse President said: “This is an incredibly exciting day for our organizations and ultimately those we serve.
“By complementing FAR’s thought leadership and innovation with AAG’s unmatched investments in consumer awareness, we are strengthening a movement to change society’s retirement trajectory for the better and bringing FOA closer to its goal of helping more Americans thrive.”