

The mortgage industry in the United States, which gained particular notoriety after the Global Financial crisis of 2007–09, is a financial sector of significant size. More specifically, the firm connects mortgage lenders, investors and internet-service providers and aids with valuation, risk analysis and fraud detection.
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The company operates with a software as a service (SaaS) business model it automates the process of funding and originating new loans while also facilitating regulatory compliance. The software firm currently processes 35% of US mortgage applications, recently with the application of machine learning and AI. Ellie Mae Overviewįounded 23 years ago, the California-based Ellie Mae provides credit unions and non-bank lenders with technology to help them originate residential mortgage loans. Additionally, the firm is also the proprietor and operator of 6 clearing houses in locations ranging from the Netherlands to Singapore. In total, the $52bn financial-markets behemoth runs 12 regulated exchanges including the NYSE, the Liffe futures exchanges in Europe, and other futures exchanges in Canada and the US. The Intercontinental Exchange (ICE) is a US-based Fortune 500 firm which operates clearing houses and global stock exchanges and also provides mortgage-related services. Such exuberant spending may be partly driven by the fact that ICE’s current mortgage business has been its best-performing division in the 3 months to July. For instance, the $11bn purchase price is nearly 24x the company’s adjusted EBITDA and approximately 12x revenues. The deal value also represents a sizable premium to Ellie Mae’s key 2019 financial metrics. The vast majority of the purchase price (84%) is set to be paid for in cash, with the remaining 16% being constituted of newly issued ICE shares. The shares-and-cash purchase is set to be particularly lucrative for Thomas Bravo, the private equity firm which currently owns Ellie Mae, as it paid a mere $3.7bn to acquire it in 2019. This $11bn transaction is the largest deal undertaken by NYSE-owner Intercontinental Exchange in its 20-year history. “ …we are pleased to announce the acquisition of Ellie Mae, which will help us transform the mortgage marketplace” Deal Structure Supplementing the expertise it gained through the acquisition of MERS and Simplifile to enhance its mortgage-related offerings, adding Ellie Mae to its portfolio could also help it modernise the mortgage market by becoming the first fully-automated firm servicing the entire mortgage product chain.įounder, Chairman and CEO of Intercontinental Exchange Jeffrey C Sprecher commented Apart from the favourable financing conditions due to robust equity valuations and cheap borrowing, the deal reflects ICE’s desire to consolidate its position in the growing digital mortgage industry. The cash-and-shares transaction is one of the latest mega-deal in the US since the beginning of the summer, after the coronavirus pandemic brought dealmaking to a sudden halt. Return plans.Stock-exchange operator Intercontinental Exchange (ICE) has made a gargantuan $11bn acquisition of Ellie Mae, a software company driving automation of the mortgage industry. Transaction to have any impact on its previously announced capital


The applicable waiting period under the Hart-Scott-Rodino Antitrust Third quarter of this year, subject to the expiration or termination of The transaction is expected to close in the ICE will pay $335 million to acquire Simplifile, which is based in Streamlining the local recording of residential mortgage transactions. Underpin residential mortgage records, serving as an electronic liaisonīetween lenders, settlement agents, and county recording offices, Of the largest networks connecting the agents and jurisdictions that Intercontinental Exchange announced that it has entered into aĭefinitive agreement to acquire Simplifile, LC. APA style: IntercontinentalExchange to acquire Simplifile for $335M.IntercontinentalExchange to acquire Simplifile for $335M." Retrieved from

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