Home Capital has announced another step on its turnaround journey with an agreement to sell certain non-core assets including its PSiGate payment services subsidiary.
It will enable the alternative mortgage lender to further focus on its deposits and mortgage business but is not significant from a financial point of view.
The sale of the assets will also save around $20 million annually on wages and other costs but it will lose around $18 million of revenue.
The deal is expected to close before the end of 2017 but includes an agreement for Home to continue to provide services for some clients for up to a year before it will have completely exited this part of its business.
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