Nationstar Mortgage LLC entered into a definitive agreement to acquire Seterus, Inc. from International Business Machines Corporation (NYSE:IBM) on January 3, 2019. In a related transaction, Mr. Cooper Group, the ultimate parent of Nationstar Mortgage, signed definitive agreements to acquire servicing rights underlying $24 billion in GSE mortgages from IBM. The transaction is expected to be funded with financing on the mortgage servicing rights and cash.

In 2018, Seterus generated over $200 million of revenues. The transaction is subject to completion of applicable regulatory approvals and customary closing conditions and is expected to close in the first quarter of 2019. George F. Schoen, Keith Hallam, Saarah Woodby, Joshua Ayal, Quinn Wetherall, Eli D. Heller, Jennifer S. Conway, Aaron J. Feuer, Sally Ye, Andrew W. Needham, Cecily Xi, Rory M. Minnis, Joyce Law and Laurel R. Berkowitz of Cravath, Swaine & Moore LLP acted as legal advisor to International Business Machines Corporation in the transaction.