In a long-rumored move, it was announced today that software giant Ellie Mae is being purchased for $3.7bb by a private equity firm known to be acquisitive in the space. Thoma Bravo LLC made the acquisition in an all-cash deal that will purchase the shares for $99 each, taking the company private.
In discussions with key insiders, this move has many benefits. First and foremost: it relieves the firm of the oversight and limitations of being a public company.
One source said there are no expected changes in management, as they like the business, and purchased it for its going concern and long-term potential.
Orlando Bravo, the founder of Thoma Bravo is considered to be a brilliant PE executive. At 49 years old, a graduate from Brown University with a BA in Political Science, he went on to get his MBA at Stanford, and his JD at Stanford as well.
Ellie Mae claims to be the processing engine for approximately 35% of all mortgages created in the US and is used widely by independent mortgage banker firms and other banks and credit unions.
Founded by Sig Anderman in 1997, the firm has grown dramatically, producing a net income of over $52 million in 2017 with estimated assets topping $830 million. Jonathan Corr, the CEO of Ellie Mae is expected to remain on as of this publication date.
By David Stevens, Senior Advisor at Mortgage Media
David H. Stevens, CMB, is Senior Advisor at Mortgage Media, and former SVP of Single Family at Freddie Mac, former EVP at Wells Fargo Home Mortgage, former President and COO of the Long and Foster Realty Companies, former Assistant Secretary of Housing and FHA Commissioner, former CEO of the Mortgage Bankers Association