The deal is expected to close in the second or third quarter of this year
Ellie Mae, the leading cloud-based platform provider for the mortgage industry, has announced that it will be acquired by private-equity firm Thoma Bravo in an all-cash transaction with an aggregate value of about $3.7 billion.
Under the terms of the agreement, Ellie Mae shareholders will receive $99 in cash per share. The price represents a 47% premium to the 30-day average closing price per share and a 49% premium to the 60-day average closing price as of Feb. 1.
Ellie Mae’s board of directors unanimously approved the agreement and recommended that stockholders vote in favor of the transaction, the company said. Ellie Mae will remain headquartered in Pleasanton, Calif. The deal is subject to approval by Ellie Mae stockholders and regulatory authorities, as well as the satisfaction of customary closing conditions. The deal is expected to close in the second or third quarter of 2019.
“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 a best place to work.”
“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, 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.”
The deal includes a 35-day “go shop” period, which allows Ellie Mae to actively solicit alternative acquisition proposals. The company has the right to terminate the agreement should it find a superior proposal.
