Private equity firm Thoma Bravo completed its all-cash $3.7 billion purchase of Ellie Mae Wednesday morning.
The private equity investment firm acquired the loan origination software provider at an aggregate equity value of approximately $3.7 billion. And in doing so, the company took Ellie Mae private, ending the golden era on one of the most impressive stock performances of any company in the mortgage finance space.
In April 2011, Ellie Mae’s IPO launched at $6 per share. It was an inauspicious start; Ellie Mae hoped to get between $9 and $11 per share.
The bad luck didn’t last. Yesterday, the stock closed at nearly $100 per share.
Here’s a quick history of the stock’s performance:
The deal was initially announced in February, and the deal officially closed Wednesday. And with that, the company’s stock was removed from the New York Stock Exchange.
In an email to clients this morning, Ellie Mae president and CEO Jonathan Corr said the deal is a new chapter for his company, and efforts to accelerate the growth digital lending platforms are already underway as part of the investment by Thoma Bravo.
“And while this change is substantial, for you, it will be business as usual,” the letter states. “Our mission to automate everything automatable for the residential mortgage industry is steadfast and our focus on your success, partnership and growth remains our number one priority.”
In a release announcing the deal’s completion, Corr said that being part of Thoma Bravo will help Ellie Mae grow. “Thoma Bravo brings deep expertise and together we are committed to supporting our lenders’ success, fostering innovation and growth of the Encompass Digital Lending Platform and accelerating our value for our ecosystem of customers, partners and employees,” Corr said.
Holden Spaht, a managing partner at Thoma Bravo, said that the firm “has long been impressed” with Ellie Mae and its technology.
“The company’s exceptional products and deep commitment to automate the mortgage process allows it to maintain its prominent position in an industry undergoing an extensive digital transformation,” Spaht said. “Our partnership can allow Ellie Mae to accelerate its momentum as it innovates on behalf of lenders and homebuyers with the ultimate goal of helping people achieve the American dream of homeownership.”
J.P. Morgan Securities served as the exclusive financial advisor to Ellie Mae and Cooley served as the legal advisor to Ellie Mae. Jefferies served as financial advisor to Thoma Bravo and Kirkland & Ellis served as legal advisor to Thoma Bravo.
