Davis + Henderson Corporation (D+H) has announced that it has entered into an agreement to acquire Mortgagebot LLC of Mequon, Wisc. The acquisition is expected to close on or about April 13, 2011, subject to satisfaction of customary closing conditions. Mortgagebot is a provider of Web‐based mortgage point‐of‐sale solutions in the United States. Founded in 1997, Mortgagebot provides a range of consumer direct, loan officer and branch and call
center mortgage origination solutions for nearly 1,000 banks and credit unions.
“By acquiring Mortgagebot, D+H further advances our strategic diversification agenda, we extend the range of integrated solutions we offer within the financial services marketplace, and we add an important dimension to our capabilities in a core lending services area”, said Bob Cronin, chief executive officer of D+H. “As a proven business with a track record of innovation and growth, Mortgagebot gives us a solid position with a large number of new customers within the US financial services marketplace. We are very pleased that Scott Happ, Mortgagebot’s founder, president and chief executive officer, and his team will be joining us to execute our shared growth plans.”
Mortgagebot's revenue is principally derived from long-term contracted subscription fees, which represented approximately 73 percent of 2010 revenues, with variable transaction fees making up the largest component of the balance. With customers typically served under long‐term contracts, the operating and business model has proven to be solid, allowing Mortgagebot to grow both revenues and profits through the difficult markets of the past two years.
“Since our founding, we have achieved growth within a variety of market conditions,” said Happ, founder, president and chief executive officer of Mortgagebot. “In fact, our annual revenue growth has averaged 13 percent over the past four years by helping our customers take advantage of the growth and cost savings associated with online mortgage originations. We believe that by being part of D+H, we can bring the benefits of our technology and expertise to an even larger segment of the U.S. and Canadian financial services marketplace.”