Business
Altisource Announces Third Quarter 2021 Financial Results
LUXEMBOURG, Nov. 04, 2021 (GLOBE NEWSWIRE) -- Altisource Portfolio Solutions S.A. (“Altisource” or the “Company”) (NASDAQ: ASPS), a leading provider and
About this update from Altisource Portfolio Solutions S.a.
[{"type":"text","content":"LUXEMBOURG, Nov. 04, 2021 (GLOBE NEWSWIRE) -- Altisource Portfolio Solutions S.A. (“Altisource” or the “Company”) (NASDAQ: ASPS), a leading provider and marketplace for the real estate and mortgage industries, today reported financial results for the third quarter 2021. “We believe Altisource is well positioned for 2022 and beyond. Our Default business should generate significant revenue and earnings growth as we return to a more normal post-pandemic operating environment. We are executing on our strategic plan in our Origination business and believe this will also be a significant driver for growth. As a result, we anticipate that we will generate positive cash flow in the second half of 2022 on a significantly reduced cost structure. Finally, the anticipated sale of our equity interest in Pointillist significantly strengthens our balance sheet by adding an estimated $100 million of cash at closing,” said Chairman and Chief Executive Officer William B. Shepro. Third Quarter 2021 Highlights(1) Corporate and Financial: On October 6, 2021, the shareholders of Pointillist, Inc. (“Pointillist”), a majority owned subsidiary of Altisource, entered into a definitive Stock Purchase Agreement to sell Pointillist to Genesys Cloud Services, Inc. (“Genesys”) for $150 million (the “Purchase Price”) The Purchase Price consists of an up-front payment of $145 million, subject to certain adjustments at closing, including a working capital adjustment, and an additional $5 million to be held in an escrow account to satisfy certain Genesys indemnification claims that may arise on or prior to the first anniversary of the sale closing, with the balance to be paid thereafterOn a fully diluted basis, Altisource owns approximately 69% of the equity at PointillistAltisource estimates that it will receive approximately $100 million in cash at closing, subject to a working capital adjustment, and an additional $3.7 million following the on-year anniversary of closing, assuming no indemnification claimsThe Company estimates the sale will generate a pre-tax and after-tax gain of $107 million before any potential reduction of goodwillThe transaction is anticipated to close before the end of the 2021 calendar year, subject to the satisfaction or waiver of customary closing conditions including regulatory approval Ended the third quarter 2021 with $36.5 million...