Jonathan Corr
President and Chief Executive Officer at Ellie Mae

Ellie Mae, a cloud-based platform provider for the mortgage industry, announced that it is to be acquired by Thoma Bravo, a private equity investment firm, for $3.7 billion.

“Since the founding of Ellie Mae more than 20 years ago, our mission has been simple – to automate everything automatable for the residential mortgage industry,” said Jonathan Corr, president and CEO of Ellie Mae. “As we enter this next phase of our digital mortgage journey, we are thrilled to provide immediate value to our shareholders. With the investment and support from Thoma Bravo, we will remain committed to our customers’ success, innovation and growth of the Encompass Digital Lending Platform while maintaining our position as the best place to work.”

Under the terms of the deal, all Ellie Mae shareholders will receive $99.00 in cash per share, a 47% premium to the 30-day average closing share price. The agreement includes a 35-day ‘go-shop’ period, which permits Ellie Mae to look for better offers.

Recently, Ellie Mae moved its entire mortgage lending infrastructure to Amazon Web Services Inc to rebuild its core applications and create new digital products for the evolving needs of homebuyers.

“Ellie Mae delivers powerful and innovative mortgage technology solutions across every channel of the residential mortgage sector, enabling lenders to originate more loans while reducing costs and driving efficiency, quality and compliance throughout the mortgage process,” said Holden Spaht, a Managing Partner at Thoma Bravo. “Ellie Mae is leading the digital transformation of the residential mortgage industry and we look forward to building on the company’s successes and to our partnership through this next chapter of growth.”

Established in 1997, California headquartered, Ellie Mae is a cloud-based platform provider for the mortgage finance industry processing 35% of the mortgage applications in the US. Ellie Mae’s technology solutions are focused around efficiency in loan origination.

Founded in 2008, Thoma Bravo is an American private equity firm focused on the software and technology-enabled services sectors. It has a series of funds representing more than $30 billion in capital commitments and has offices in San Francisco and Chicago.

by Megha Bhattacharya
Market Analyst at IBS Intelligence
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