Intercontinental Exchange agreed to acquire Ellie Mae Inc. from private equity firm Thoma Bravo LLC as part of a deal in which the mortgage loan platform is valued at approximately $ 11 billion.
The New York Stock Exchange owner is paying a combination of shares and cash to Ellie Mae of Pleasanton, California, according to a statement on Thursday. No other conditions have been announced.
Thoma Bravo privately took Ellie Mae in February 2019 with a $ 3.7 billion deal.
Ellie Mae operates a cloud-based platform for the mortgage finance industry. With its technology, ICE can expand its own mortgage service business. ICE reported $ 90 million in mortgage service revenue in the first half of 2020, an increase of 40% over the previous year. Jeff Speaker, ICE's chief executive officer, said when calling for profit in July that mortgage service is the fastest growing business on the company's platform.
"We have a company that is part of almost every US mortgage closing process and collects, collects, and stores important data," Spokesman said in July. "The US mortgage back office workflow is ripe for automation and greater efficiency."
ICE acquired full control of MERS & # 39; owner Merscorp Holdings in October 2018. ICE acquired Simplifile in May 2019.
Intercontinental Exchange shares gained 5.3% in New York this year. They rose $ 1.30 to $ 97.46 on Thursday before the regular trading announcement.
According to Erica Bigley, a company spokeswoman, Ellie Mae software processes more than 40% of annual US mortgage origins. This gives Ellie Mae insight into trends such as borrowers' credit profiles and changes in underwriting standards.