Benzinga | Oct 5, 2021 08:54AM EDT

Dream Finders Homes Acquires Assets Of McGuyer Homebuilders For $471M

* Dream Finders Homes Inc (NASDAQ:DFH) has acquired the homebuilding, mortgage banking, and title insurance assets of privately held Texas homebuilder McGuyer Homebuilders Inc and related affiliates for $471 million in cash.

* Dream Finders Homes expects the acquisition to increase its geographic operations in the Austin metro area and expand into the Texas markets of Houston, Dallas, and San Antonio.

* Dream Finders Homes anticipates the newly acquired backlog of 1,845 units to generate over $1 billion in revenues over the next 12 to 18 months.

* McGuyer Homebuilders' CEO and their employees will remain with the combined company and continue to operate under the Coventry Homes brand.

* Dream Finders Homes used cash on hand of $20 million and issued 150,000 shares of newly-designated Series A Convertible Preferred Stock to consummate the transaction. It also increased the aggregate commitments under its credit facility.

* Dream Finders Homes held $53 million in cash and equivalents as of June 30, 2021.

* Price Action: DFH shares closed Monday's session at $17.85.