, a Pleasanton, Calif.-based cloud-based platform provider for the mortgage finance industry, has been acquired by Thoma Bravo LLC
, a private equity investment firm, in an all-cash transaction valued at $3.7 billion.
Under the terms of the agreement, all Ellie Mae shareholders will receive $99 in cash per share. The agreement also includes a 35 day “go-shop” period that enables Ellie Mae to solicit and enter negotiations with parties that make alternative acquisition proposals. Ellie Mae’s Board of Directors unanimously approved the definitive agreement and recommended that stockholders vote their shares in favor of the transaction. Ellie Mae’s headquarters will remain in Pleasanton, Calif., with regional offices across the United States. Closing of the transaction is subject to approval by Ellie Mae stockholders and regulatory authorities and the satisfaction of customary closing conditions. The transaction is expected to close in the second or third quarter of 2019 and is not subject to a financial condition.
“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 Chief Executive Officer 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.”
Holden Spaht, a Managing Partner at Thoma Bravo, said, “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. 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.”