reAlpha Completes InstaMortgage Acquisition Despite Pending State Approvals
reAlpha Tech Corp (NASDAQ:AIRE) completed its $8.5 million acquisition of InstaMortgage on August 19, despite still needing regulatory approvals in Virginia and New York. The deal includes an initial payment of $2 million ($500k cash + $1.5m stock), with up to another $6.5 million payable over three years through semiannual installments. Following the announcement, AIRE shares rose 10.5% on August 21. The acquisition adds full-cycle mortgage lending capabilities and expands reAlpha’s platform across 38 states plus Washington D.C., potentially improving cross-selling opportunities within its homebuying ecosystem. InstaMortgage reported over $4 billion in mortgages originated over the past five years, which could enhance revenue streams for AIRE. However, risks remain due to pending approvals in two key markets that accounted for a significant portion of InstaMortgage’s origination volume—20% or more during recent periods. If these states delay approval further, it may disrupt operations and integration benefits before they materialize.
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