ICE agrees $11bn Ellie Mae acquisition
Intercontinental Exchange (ICE) has agreed to acquired mortgage software firm Ellie Mae from its owner Thomas Bravo.
The deal values Ellie Mae at around $11 billion. It arrives after the similar 2016 acquisition of Mers and 2019 buyout of Simplifile.
ICE aims to position itself as a leader in electronic workflow solutions for the US mortgage industry.
Ellie Mae employs around 1,700 people. It provides technology services to the mortgage supply chain, and claims to have more than 3,000 customers.
Thomas Bravo bought the firm for $3.7 billion in 2019. ICE’s deal consists of cash, stock, and debt.
“Our planned acquisition represents a one-of-a-kind opportunity to add an extraordinary enterprise with great leadership to our family,” says Jeffrey Sprecher, chairman and CEO of ICE.
He adds that the deal will provide ICE with “complementary products and a wide array of customers and stakeholders”.
Those new customers will benefit from ICE’s “core and proven expertise in operating networks and marketplaces”.
Jonathan Corr, president and CEO of Ellie Mae, says his firm has been on a long journey to “automate everything automatable” in the mortgage industry.
Joining ICE will allow the firm to “accelerate” realising that vision.
“We are excited to be joining the Intercontinental Exchange family and having the opportunity to work closely with Simplifile and Mers in helping our industry to realise the true digital mortgage.”