Intercontinental Exchange Agrees to Acquire Ellie Mae in $11 Billion Deal

In a late-breaking announcement on Thursday, Intercontinental Exchange (ICE) announced that it has agreed to purchase mortgagetech platform provider Ellie Mae from Thoma Bravo. Valued at $11 billion, Ellie Mae will add to Intercontinental Exchange’s growing presence as a major workflow solutions provider for the U.S. residential mortgage industry. This growth includes ICE’s acquisition of a majority stake in MERS in 2016, and the comany’s acquisition of Simplifile three years later.

Ellie Mae President and CEO Jonathan Corr referred to these other players and the chance to collaborate with them in his remarks about the acquisition agreement. “We are excited to be joining the Intercontinental Exchange family and having the opportunity to work closely with Simplifile and MERS in helping our industry to realize the true digital mortgage,” Corr said. “We have been on a journey, as we have long said, ‘to automate everything automatable’ for the mortgage industry, and joining ICE, which has followed a parallel journey in global exchanges, will allow us to further accelerate realizing our vision.”

Founded in 1997 – and acquired by Thoma Bravo in February of last year in a deal valued at $3.7 billion – Ellie Mae offers a digital lending platform to help mortgage lenders originate more loans, reduce origination costs, and shorten the time to close. An alum of both our developers conference, FinDEVr, and making its Finovate debut in 2017, Ellie Mae reports that its customers save an average of $813 per loan, and close loans seven days faster, producing an average annual ROI of 698%.

During its time as part of Thoma Bravo, Ellie Mae recorded “nearly double revenue” while improving profitability, partnered with firms like AI Foundry to further streamline the mortgage origination process, and acquired fellow mortgagetech company Capsilon. Both AI Foundry and Capsilon are also Finovate alums.

“We partnered with Jonathan Corr, Joe Tyrrell, and the Ellie Mae team to advance their vision to automate the residential mortgage industry while also using Thoma Bravo’s deep software expertise to greatly improve the company’s operations and accelerate growth,” Thoma Bravo Managing Partner Holden Spaht said. “We are confident that being part of ICE will enable Ellie Mae to continue transforming an industry still in the early innings of digitization, and we look forward to following Ellie Mae’s continued success as part of ICE for many years to come.”

A Fortune 500 company formed in 2000, Intercontinental Exchange owns financial and commodity exchanges, operating 12 such regulated institutions in the United States, Europe, and Canada. The Atlanta, Georgia-based company also owns and operates six central clearing houses around the world. With revenues of $6.5 billion in 2019, Intercontinental Exchange is publicly traded on the NYSE under the ticker ICE. The firm has a market capitalization of $54 billion.

Photo by Scott Webb from Pexels

Xignite Secures Patent for Market Data Driven Alerts; eXate Earns Accelerator Spot

Market data distribution and management solutions provide Xignite has scored a patent for the technology behind its CloudAlerts REST API. The patent recognizes the company’s innovation in developing real-time alerts based on pre-defined stock market conditions. This technology can be added to website or mobile apps by developers to provide users with real-time, automatic notifications on everything from price breakouts to volume surges via SMS, email or onscreen.

What’s unique about Xignite’s approach is the way it is able to deliver market data-driven user alerts at scale, incorporating both the wide variety of user preferences as well as processing a sizable volume of exception conditions in real-time. Fellow Finovate alum SoFi leverages Xignite CloudAlerts in its SoFi Invest service, using the technology to warn investors when a portfolio holding drops below critical levels.

“SoFi saw record investing activity last week during the coronavirus outbreak and that really tested our alerts system,” SoFi Trading and Investment Manager Samuel Nofzinger said. “Our customers value the alerts because they help them invest and protect their money better, especially in today’s volatile market.”

Congratulations to eXate Technologies. The U.K.-based cybersecurity firm – and FinovateEurope 2018 alumearned a spot in Tech Nation’s Cyber 2.0 growth program. This year’s class marks the second cohort for the program, which is geared toward early-stage cybersecurity startups. Companies participating in the six-month accelerator get peer-to-peer learning with program mentors, masterclasses led by expert scale coaches, as well as meetups and networking with peers, investors, and potential clients.

Add Onfido to the list of Finovate alums that are pitching in to help organizations manage the COVID-19 pandemic. The company announced late last week that it is offering six free months’ use of its biometric identity solution to nonprofit organizations that are fighting the coronavirus. Nonprofits in healthcare, home care, and education are among those to benefit from the program, including a company that uses Onfido’s technology to verify completion of COVID-19 testing.

The Finovate Podcast is on fire! If you’ve not been able to keep up, here are links to the latest conversations with host Greg Palmer.

Here is our weekly roundup of news from our Finovate alums.

  • FreeAgent partners with NatWest to offer its customers online cloud accounting software.
  • Zogo Finance drops app set-up fees for its credit union customers in Louisiana.
  • Ellie Mae announces general availability of peer benchmarking comparison analysis solution, Ellie Mae Insights.
  • Baker Hill launches NextGen SBA Fast Track to help SMBs access CARES Act and Paycheck Protection Program (PPP) funds.
  • Temenos wins Google Cloud Technology Partner of the Year award.
  • NYMBUS teams up with NCR Corporation to help SMBs impacted by COVID-19.
  • University First FCU brings on Insuritas to launch a digital insurance agency.
  • Artegence and Efigence become Magnolia Platinum Partners.
  • Kabbage partners with an undisclosed bank to deliver Paycheck Protection Program (PPP) loans to U.S. small businesses.
  • Moven founder Brett King hints at partnership with Varo Money, encourages users to open an account.
  • ShopKeep and Lendio partner to help small businesses access COVID-19 funds.
  • ATFX now accepting payments via Trustly.
  • ACI Worldwide unveils new “Delay My Payment” feature of its ACI Speedpay solution to help billers and consumers during the COVID crisis.
  • DriveWealth launches DriveHSA, a new tool for Health Savings Account platform providers.
  • Kasasa sees a 288% increase in borrowers using its Take-Back feature.
  • Stash now counts one million banking customers.
  • MX launches portal for banks navigating the Small Business Administration’s new Payment Protection Program.
  • Credit Hero leverages Salt Edge to access borrower’s bank data.
  • Finanteq introduces new initiative to provide free digital banking tools – Pocket Branch and Extentum – to banks during the coronavirus pandemic.
  • Bankjoy hosts online summit to address how credit unions and fintechs can partner to respond to the economic challenges of COVID-19.

Finovate Alumni Features and Profiles

The Importance of Financial Literacy During Uncertain Economic Times – A growing number of fintechs – many of them Finovate alums you’ll meet below – have devised innovative ways to help young people in particular, become better earners, savers, spenders, and investors.

Kabbage Collaborates with Facebook to Back Retailers During the COVID Crisis – Together, the two companies will help merchants continue to generate revenue at a time when their customers – for sound reasons based on public health – are largely staying away.

SoFi Inks Agreement to Acquire Galileo Financial Technologies – In a cash and stock deal valued at $1.2 billion, online lender and personal finance innovator SoFi has agreed to acquire financial services API and payments platform, Galileo Financial Technologies.

Building a Financial Advisor for Main Street America – We recently chatted with SuperMoney founder and CEO Miron Lulic to give us an update on the company’s platform that helps consumers reach their financial goals.

BankBazaar Adds $3.8 Million to Series D – The capital comes from Amazon and Walden SKT Venture Fund, who have joined Sequoia, GUS Holdings, and Eight Roads Investments in the round. 

The Tightly-Knit Mortgagetech Sector Gets Even Tighter as Ellie Mae Acquires Capsilon

Ellie Mae announced today it has acquired fellow mortgagetech company Capsilon for an undisclosed amount. This news comes after Ellie Mae was acquired by Thoma Bravo earlier this year for $3.7 billion.

With a mission to “automate everything automate-able” when it comes to the mortgage process, Ellie Mae sees today’s acquisition as a step forward. “This is a significant day for the mortgage industry, as with the acquisition of Capsilon we are bringing together two market-leading companies and adding to our platform the pioneer of AI-powered intelligent automation leveraged by some of the largest lenders and servicers in the industry,” said Ellie Mae President and CEO Jonathan Corr.

Ellie Mae will combine its Encompass digital lending platform with Capsilon’s technology to create a more fully digital mortgage solution. Specifically, Ellie Mae will leverage Capsilon IQ, which is used by six of the top 10 mortgage loan originators to automate manual tasks; and Capsilon Instant Underwriter, which the company launched earlier this year to bring consistency and accuracy to the underwriting process.

“By joining forces with Ellie Mae, we are excited to extend our capabilities and deliver unprecedented functionality through deep integrations with the Encompass Digital Lending Platform,” said Sanjeev Malaney, CEO and Founder of Capsilon.

Mortgagetech is one of the least crowded sub-sectors in fintech, and partnerships among players are common. In the past few years both companies have partnered with Finicity, while Capsilon has partnered with Blue Sage, Home Point Financial, and Optimal Blue; and Ellie Mae has teamed up with AI Foundry, Roostify, First Data, Blend, and Lender Price.

Founded in 1997, Ellie Mae demonstrated Encompass Consumer Connect at FinovateSpring 2017. The online lead generation tool turns consumer interest into a mortgage application by letting the borrower complete an application, provide and receive information, and order services from a single platform. Ellie Mae is headquartered in California.

Founded in 2004, and with eight offices around the globe, Capsilon processes 15% of U.S. mortgages. At FinovateSpring 2019 the company demoed how its instant, digital underwriting solution helps lenders make more informed decisions.

Capsilon, which processes 2 million pages of mortgage documents per day, has 450 employees and 100,000+ users. The California-based company has raised $21 million.

Finovate Alumni News


  • Currencycloud’s Currencycloud Spark Powers Multi-Currency Accounts.
  • The Tightly-Knit Mortgagetech Sector Gets Even Tighter as Ellie Mae Acquires Capsilon.

Around the web

  • Tradeshift teams with Genpact to help clients enhance accounts payable and procurement processes.
  • OurCrowd to join the Millennium Alternative Investment Networkto increase VC opportunities in the U.S.
  • Finextra talks to Nutmeg about expanding the human side of its roboadvisory.
  • Dwolla unveils The Integration Partner Program for more seamless technical integrations between Dwolla, its partners, and their clients.
  • Finantix appoints Christine Ciriani as Chief Commercial Officer.
  • NCR teams with Brightwell to supply ATMs and managed services for Brightwell’s largest cruise line clients.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

AI Foundry and Ellie Mae Leverage AI to Accelerate Lending

The partnership between AI Foundry and Ellie Mae announced today is the latest sign of how digital transformation is sweeping through the mortgage industry.

The two companies – a provider of advanced AI solutions to streamline business processes and a residential mortgage software specialist – will integrate their technologies to help reduce the most labor-intensive aspects of the mortgage origination process. Together, AI Foundry and Ellie Mae seek to bring greater efficiency and easier compliance for the thousands of lenders who rely on Ellie Mae’s Encompass digital mortgage solution.

“By integrating our technology with an innovative industry leader such as Ellie Mae, we can dramatically expand AI Foundry’s reach into lenders, and help them speed mortgage originations through increased productivity and accuracy,” VP of Business Development for AI Foundry Clark Brett said. “For their customers, this translates into mortgage application approvals in hours rather than weeks.”

Lenders using Ellie Mae’s Encompass will be able to leverage AI-powered automation to lower the amount of time it takes to identify, collect, and organize borrower documents; proactively spot and act on missing and/or incomplete documentation; and conduct real-time validation and verification of data extracted from the documents.

The new capabilities, including AI Foundry’s visual cognitive document automation technology, will give users of the Encompass platform better processing efficiency, as well as improved risk and quality management.

“Our technology integration will provide the 3,000 mortgage lenders who use Ellie Mae solutions an onramp to Encompass that will significantly improve their productivity and drive their lending business forward,” founder and General Manager of AI Foundry Steve Butler said.

AI Foundry demonstrated its Agile Mortgages solution at FinovateFall 2018. The technology uses both AI and machine learning to help FIs automate and streamline manual processes, improving efficiency and transforming the customer experience. Founded in 2016 and headquartered in Wakefield, Massachusetts, AI Foundry was named to CIOReview’s 20 Most Promising Banking Technology Solution Providers last summer.

Ellie Mae made headlines earlier this month when it announced that the company had agreed to be acquired by Thoma Bravo for $3.7 billion. The Pleasanton, California-based company was founded in 1997, and demonstrated its Encompass Consumer Connect and Developer Connect solutions at FinovateSpring 2017.

Finovate Alumni News


  • AI Foundry and Ellie Mae Leverage AI to Accelerate Lending.
  • Dwolla Helps Status Streamline Cash Rewards for Savings.
  • Live from London: Breaking Banks Power Hour Rocks FinovateEurope.

Around the web

  • Marketing Technology Insights interviews BlueRush CEO, Steve Taylor.
  • PaymentsSource features nCino, Jumio, MX, LendKey, Kasasa, Jack Henry & Associates, Alkami, Finicity, and Prosper Marketplace in its list of the Best Fintechs to Work For.
  • Fiserv joins Financial Data Exchange as a sustaining member.
  • Partnership with Mercury FX brings Ripple to the Middle East and Canada.
  • TurnKey Lender highlighted as a top auto loan origination platform by HCCResearch.
  • European CFD/FX firm Windsor Brokers goes live with iSignthisISXPay and Paydentity solutions.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumi News


  • Teams Up with VA to Bring Identity Proofing Options to Vets.
  • OmniSci Reports Wide-Ranging Growth in Wake of Rebrand.

Around the web

  • Sberbank customers can now make instant transfers between Sberbank cards and WebMoney wallets courtesy of new partnership.
  • Mobile gifting platform Swych announces it will accept payment in cryptocurrency.
  • Ellie Mae introduces the early adopters of its Integrated Partner Program.
  • Lending Club and U.K. data vendor Brismo team up to provide standardized performance metrics for lending.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Thoma Bravo to Acquire Ellie Mae in $3.7 Billion Deal

Private equity investment firm Thoma Bravo will acquire US-based lendtech Ellie Mae for $3.7 billion, reports Antony Peyton of Fintech Futures (Finovate’s sister publication).

Ellie Mae provides a cloud-based platform for the mortgage finance industry. The deal is an all-cash transaction.

Holden Spaht, a managing partner at Thoma Bravo, said: “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.”

Ellie Mae’s board of directors unanimously approved the definitive agreement and recommended that stockholders vote their shares in favor of the transaction.

Ellie Mae’s headquarters will remain in Pleasanton, California, with regional offices across the US.

Closing of the transaction is subject to approval by Ellie Mae stockholders and regulatory authorities and the satisfaction of customary closing conditions. The transaction is expected to close in the second or third quarter of 2019 and is not subject to a financial condition.

Some of Ellie Mae’s recent deals include an integration with Roostify, and a partnership with First Data.

Back in June 2018, Thoma Bravo acquired another mortgage software company, California-based MeridianLink.

Founded in 1997, Ellie Mae demonstrated its Encompass Consumer Connect and Encompass Developer Connect solutions at FinovateSpring 2017.

Finovate Alumni News


  • Thoma Bravo to Acquire Ellie Mae in $3.7 Billion Deal.
  • Welcome to Day Four of FinovateEurope.

Around the web

  • ACH Alert unveils its latest Payment Data Xchange (PDX) service module within its flagship Fraud Prevention HQ platform.
  • Fidor Bank launches chatbot powered by Best of Show winner, Finn AI.
  • Paysend to offer money transfers to bank accounts in 34 European countries.
  • Zopa introduces new chairman Gordon McCallum, who will take over from co-founder Giles Andrew.
  • Kentucky-based Forcht Bank partners with Fiserv to upgrade its credit card program.
  • Finastra appoints Siobhan Byron as SVP and Head of Technology Enabled Managed Services (TEMS).
  • Aire inks reseller agreement with Experian.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News


  • BlackRock to Acquire Equity Stake in Envestnet.
  • BBVA Brings on Onur Genç as New CEO.

Around the web

  • Check Point Software integrates with New Amazon Web Services Security Hub.
  • Revolut to launch in Singapore and Japan.
  • Payfone to extend Anti-SIM Swap fraud technology to 35 markets in 2019.
  • Mambu now powering Lendico Switzerland.
  • Dan Madden to join Ellie Mae as Executive Vice President and Chief Financial Officer.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Ellie Mae Builds Data Lake on AWS

Ellie Mae is moving its infrastructure to Amazon Web Services’ (AWS) cloud to rebuild its core applications and create new digital products for homebuyers, reports Antony Peyton of Fintech Futures (Finovate’s sister publication).

The firm will use the “breadth and depth” of AWS services, including compute, storage, database, serverless, and containers, for the loan process for its customers and partners. Ellie Mae built a company-wide data lake on AWS using Amazon Simple Storage Service (Amazon S3) for digital lending.

Satheesh Ravala, SVP, cloud engineering and operations at Ellie Mae, said, “AWS gives us an unmatched set of cloud services and a highly reliable infrastructure to work with.”

The company uses AWS Lambda to run code without provisioning or managing servers, Elastic Container Service for Containers to develop micro services, and Amazon Simple Queue Service (Amazon SQS) to decouple and scale microservices, distributed systems, and serverless applications on AWS.

AWS states that it offers over 125 services for compute, storage, databases, networking, analytics, machine learning and artificial intelligence (AI), internet of things (IoT), mobile, security, hybrid, virtual and augmented reality (VR and AR), media, and application development, deployment, and management within 19 regions around the world. These include the U.S., Australia, Brazil, Canada, China, France, Germany, India, Ireland, Japan, Korea, Singapore, and the U.K.

Founded in 1997, Ellie Mae demonstrated Encompass Consumer Connect at FinovateSpring 2017. The online lead generation tool turns consumer interest into a mortgage application by letting the borrower complete an application, provide and receive information, and order services from a single platform. During the demo, presenter Jonas Moe, SVP of Market Strategy, demonstrated the company’s API by showing off an Alexa integration with Encompass Plus– asking questions such as, “What loans have rate lock expirations this week?” and “Search for a better rate.” Ellie Mae is headquartered in California. Jonathan Corr is president and CEO.

Last month, the company teamed up with fellow Finovate alum Roostify, creating a bi-directional integration between the two firms to increase efficiencies in the mortgage application process. In August, Ellie Mae partnered with First Data to enhance security of lending payments.

Roostify Teams Up with Ellie Mae to Boost Efficiency in Mortgage Lending

A bi-directional integration between Roostify and Ellie Mae announced last week is a boon for lenders who will be able to seamlessly pass information between the two systems. The partnership, in the words of Roostify VP of Products, Sandeep Aji, “makes it easier than ever for lenders to move loans forward faster with fewer manual touches, reducing operating costs and further improving the consumer experience.”

Applications created in Roostify will automatically appear in Ellie Mae’s Encompass platform thanks to the new integration, and documents created in Encompass can be read and signed in Roostify. Uploaded documentation such as bank statements also will be accessible on both platforms.

“We believe our customers will benefit significantly from this industry-leading integration that will improve the loan process for consumers and lenders alike,” Mark McLaughlin, SVP of Business Development for Roostify, said.

Founded in 2014, Roostify demonstrated its digital home lending platform at FinovateSpring 2018. The company’s solutions help firms from enterprise banks to independent brokerages close faster, reduce excess paperwork, and give mortgage consumers a smoother, end-to-end experience. Supporting digital customer acquisition with a self-service component that enables loan applicants themselves to fulfill much of the loan process, Roostify’s platform has transacted billions of dollars in mortgages and helped close thousands of home loans across the U.S.

This August, Roostify unveiled Adapt, a tool to help mortgage lenders with complex workflows to improve process management, and announced a new Chief Financial Officer, Eric Amblard. The previous month, Roostify partnered with Colonial National Mortgage, improving the online experience for customers of the Texas-based FI. Honored this spring at the MBA Insights 2018 Tech All-Star Awards, Roostify has raised $33 million in funding, and includes Cota Capital and USAA among their investors. The company is headquartered in San Francisco, California.

A provider of cloud-based mortgage financing solutions, Ellie Mae processes 35% of all U.S. mortgage applications. Founded in 1997 and headquartered in Pleasanton, California, the company participated in our developers conference, FinDEVr New York 2017. At the event, the company’s VP for Platform Engineering, Jeff Collins, introduced Ellie Mae Encompass Developer Connect, which enables developers to leverage RESTful APIs to access loan data, real-time web-hook notifications on the loan file, and launch Ellie Mae Network services.

In August, Ellie Mae announced a partnership with First Data to make it easier for Ellie Mae customers to securely accept payment for loan origination and other costs. In May, the company teamed up with fellow Finovate alum, Blend, which will integrate Ellie May’s electronic disclosure delivery technology. Other partnerships forged this year include pacts with Lender Price, Pacific Union, and COCC.

Ellie Mae trades on the New York Stock Exchange under the ticker symbol “ELLI” and has a market capitalization of $2.8 billion. Jonathan Corr is CEO.