As expected, H&R Block Inc. announced that it has signed an agreement to sell its struggling Option One Mortgage Corp. lending arm, though unit subsidiary H&R Block Mortgage Corp. is not part of the deal.

Block will sell Option One to OOMC Acquisition Corp., a newly formed company affiliated with Cerberus Capital Management LP, for about $1.27 billion in cash -- a purchase price equal to the value of the tangible net assets of the business, though Block could receive an additional cash payment depending on Option One’s future income from mortgage loan originations.

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