![]() “While the growth has been tremendous, the sustainability of the growth in a post-COVID-19 world and increasing mortgage rate environment would be the key questions from investors,” he added. Oppenheimer’s Owen Lau noted that “in light of the 8–10% organic growth, and an expandable total addressable market (TAM) currently estimated at $10B, we believe Ellie Mae will enhance the growth profile of ICE.” Lau has a Buy on the stock with a $109. “We see a truly unique asset with revenue growth that will approach double digits regardless of the macro environment, provide the mortgage services business with more recurring revenue, and give ICE a very deep moat in a key area for years to come.” Historically, those efforts have rewarded shareholders handsomely, and we believe this will be no different,” Hill wrote in a note to investors. “We have seen ICE take big swings since its inception to evolve trading, clearing, data services… and now mortgages. ( See ICE stock analysis on TipRanks )įollowing the announcement, Rosenblatt Securities analyst Kenneth Hill reiterated a Buy rating on the stock with a $104 price target, recommending investors should buy ICE on any softness in the shares. ICE shares appreciated 3.6% to $100.96 at the close on Friday taking their year-to-date advance to 9%. Following the closure, Ellie Mae will be merged into ICE Mortgage Services, creating a digital workflow solution for the US residential mortgage industry, from lead generation to origination and post-closing. ![]() The transaction is expected to close in the third quarter or early fourth quarter of 2020, following regulatory approvals. Through its digital lending platform, Ellie Mae provides technology services to all participants in the mortgage supply chain, including its over 3,000 customers and thousands of partners and investors. It will also enhance ICE’s growth strategy in mortgage technology.”Ĭalifornia-based Ellie Mae with about 1,700 employees, was founded in 1997 with the vision to automate and digitize the trillion-dollar residential mortgage industry. “Our planned acquisition represents a one-of-a-kind opportunity to add an extraordinary enterprise with great leadership to our family. “Twenty years after we founded Intercontinental Exchange to provide a transparent trading platform for the energy industry, we are pleased to announce the acquisition of Ellie Mae, which will help us similarly transform the mortgage marketplace,” said ICE CEO Jeffrey C. The deal, which strengthens ICE’s focus on providing digital services and end-to-end electronic workflow solutions to the US residential mortgage industry comes after the company bought a majority stake in MERS in 2016, purchased the remainder in 2018, and acquired Simplifile in 2019. The global exchanges operator expects the acquisition to be accretive to adjusted EPS in the first full year of ownership. ICE ( ICE) will acquire Ellie Mae from private equity firm Thoma Bravo, and fund the deal through a combination of cash, representing 84% of the transaction value, and newly issued shares of ICE common stock, which will cover 16%. That was the largest year-over-year percentage gain of the businesses in the trading and clearing segment.īut on a company-wide basis, mortgage made up less than 2% of ICE's first-quarter revenue of $1.3 billion.Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange (NYSE), has entered into an agreement to buy Ellie Mae, a cloud-based platform provider for the mortgage finance industry, in a deal valued at $11 billion. In the first quarter, ICE's fixed-income and credit reporting business, which includes ICE Mortgage Services, had net revenue of $87 million, up 54% from $56 million in the first quarter of 2018. In the first quarter, MERS added more e-notes to its registry than it did for all of 2018. ![]() The holding company is also the owner of the New York Stock Exchange. ICE acquired full control of MERS last October. Simplifile will continue to operate under that name and maintain its headquarters in Provo, Utah it has 200 employees. ICE will pay $335 million to acquire Simplifile with the deal expected to close in the third quarter. Alaska, Arizona, Colorado, Delaware, Hawaii, Iowa, Maryland, Massachusetts, Nevada and Oregon are the others. Idaho is the 11th state (and the third in 2019) where all of its counties are on Simplifile, the company announced.
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