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.

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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.

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First Data Partners with Ellie Mae to Improve Security of Lending Payments

A new partnership between Ellie Mae and First Data will make it easier for Ellie Mae customers to securely accept payment for costs related to loan origination, processing, underwriting and credit reports.

First Data will integrate with Ellie Mae’s Encompass Consumer Connect lending platform. Part of Ellie Mae’s Digital Mortgage Solution, Consumer Connect enables borrowers to apply for mortgages online, engage with loan officers, and securely eSign and upload documents. The technology provides lenders with a customized digital mortgage workflow that leverages automation to deliver a streamlined experience across functions. Ellie Mae will leverage First Data’s BluePay Gateway, part of the company’s CardConnect ISV platform, which helps companies add secure payment processing within SaaS, mobile, and POS apps.

“First Data is thrilled to deliver our fast, simple and secure payment technology to the banks, credit unions, and mortgage lending companies Ellie Mae serves,” EVP and Head of CardConnect at First Data, Jeff Shanahan said. “Our relationship will enable Ellie Mae to deliver a simple and secure solution for its clients and further enhanced consumer engagement for lenders.”

Ellie Mae demonstrated Encompass Consumer Connect at FinovateSpring 2017. In addition to the lending platform, the company introduced its set of developer tools – including APIs, interactive documentation, and API playground – called Encompass Developer Connect. Earlier this year, Ellie Mae teamed up with mortgagetech innovator Blend, who will leverage Ellie Mae’s electronic disclosure delivery, part of its Encompass mortgage solution. Also this spring, the company announced an integration with Lender Price, the digital mortgage platform from Cre8tech Labs, and partnered with fellow Finovate alum Finicity. The agreement between the two companies will integrate Finicity’s digital verification of assets technology into Ellie Mae’s Encompass solution.

Headquartered in Pleasanton, California, and founded in 1997, Ellie Mae has more than 1,000 U.S.-based workers and revenues in 2017 of $417 million. The company serves 3,500 financial institutions and mortgage lending firms, and processes more than a third of all mortgage loan applications in the U.S. Ellie Mae trades on the New York Stock Exchange under the ticker “ELLI” and has a market capitalization of $3 billion. Jonathan Corr is CEO.

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Mortgagetech Magnates Ellie Mae and Blend Team Up

Mortgagetech company Blend and mortgage finance platform provider Ellie Mae have joined forces this week, as reported by American Banker. Through the partnership, Blend is leveraging Ellie Mae’s electronic disclosure delivery, a part of the company’s Encompass mortgage solution.

The integration will augment Blend’s self-service mortgage platform by offering a more seamless user experience. Lenders who use Ellie Mae’s Encompass loan origination solution can create and deliver electronic disclosures through Ellie Mae’s document preparation software. The electronic delivery will not only facilitate the e-signature process, it will also enhance compliance by leaving an audit trail.

Ellie Mae’s Encompass mortgage solution helps lenders originate more loans with lower origination costs and a faster time to close. Using the full Encompass solution, Ellie Mae helps lenders save an average of $967 per loan in operational improvements, such as saving time and postage from having to deliver disclosures via snail mail. Blend estimates its integration of Ellie Mae’s electronic disclosure delivery will save an average of $15 per loan.

Earlier this spring, Pacific Union Financial partnered with Ellie Mae to leverage the full Encompass mortgage management solution, enabling customers of both Pacific Union and Ellie Mae to deliver loan data and documents from Encompass to Pacific Union more efficiently and in real time.

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.

Blend demoed its data-driven mortgage at FinovateSpring 2016. The company was recently recognized for its achievements in the mortgage industry at the MBA Insights Tech All-Star Awards and was also featured on the Forbes Fintech 50 list. Last summer, Blend pulled in a $100 Series D investment from Greylock, Emergence Capital, Lightspeed Ventures, Nyca Partners, and 8VC, bringing its total capital to more than $160 million.