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.