(Reuters) – Intercontinental Exchange Inc (N:) (ICE) said on Thursday it would buy Ellie Mae, a technology platform for the mortgage finance industry, from private equity firm Thoma Bravo in a deal valued at $ 11 billion.
Strengthening its position in mortgage servicing has been a key focus for the owner of the New York Stock Exchange in recent years.
Jeffrey Sprecher, chairman and chief executive of ICE, said in a statement the transaction represented a “one-of-a-kind opportunity” that would “enhance ICE’s growth strategy in mortgage technology”.
Buying Ellie Mae was expected to be accretive to ICE’s adjusted earnings per share in the first full year of ownership, the statement added.
The transaction is expected to yield a substantial profit for Chicago-based Thoma Bravo, which only completed the $ 3.7 billion take-private acquisition of Ellie Mae in April 2019.
ICE will fund its Ellie Mae purchase, which is expected to close before the end of 2020, predominantly using cash, with 16% of the value covered by the issuance of new ICE common stock.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.