Walker & Dunlop to Acquire CWCapital LLC for $220M

Walker & Dunlop, Inc.

announced today that it entered into a definitive agreement to acquire CWCapital LLC, an operating subsidiary of CW Financial Services LLC ("CW Financial"), which is wholly owned by funds managed by affiliates of Fortress Investment Group LLC

("Fortress"). The purchase price will total $220 million, $80 million in cash and approximately $140 million in Walker & Dunlop stock, subject to potential adjustment based on changes in the Company's stock price pending closing. Upon the transaction's close, it is expected that CW Financial will become the Company's largest shareholder. CWCapital is a leading 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, MA, CWCapital currently has approximately 180 employees, services $16.8 billion in commercial mortgages, and has closed over $20 billion in commercial real estate financing since 1994. Michael Berman, CEO of CWCapital, will take a senior leadership role at Walker & Dunlop.