Ellie Mae has agreed to purchase El Segundo, Calif.-based sales acceleration platform Velocify in a $128 million all-cash deal.
Pleasanton, Calif.-based Ellie Mae is a leading provider of enterprise-level, on-demand automated solutions for the mortgage finance industry. The twenty-year-old company’s cloud-based platform processes nearly a quarter of all U.S. mortgage applications, serving banks, credit unions and mortgage companies of all sizes that use its services to achieve compliance, quality and efficiency. The firm’s Encompass mortgage management solution and services is an all-in-one platform that allows lenders to cut costs and gain a competitive edge in a crowded, zero-tolerance industry.
In acquiring Velocify, which helps its over 1,500 clients streamline, automate and optimize their sales processes, Ellie Mae seeks to deliver a robust, complete digital lead capture and conversion solution to lenders. The new entity will combine Velocify’s lead management, engagement and distribution capabilities with Ellie Mae’s Encompass CRM’s automated one-to-one personal marketing and Encompass Consumer Connect digital experience. The new platform should facilitate the process of creating interest, turning interest into an application and ultimately funding loans quickly and at a low cost.
“A digital transformation is occurring across the financial services industry, especially in the mortgage vertical in which Velocify has a leading position,” said Nick Hedges, Velocify’s president and CEO. “Successful sales teams offer an end to end digital experience combined with as much human touch as the consumer desires throughout their buying process. The team at Velocify has built the leading software solution for consumer sales engagement during the early stages of the sales process. By joining forces with Ellie Mae we are very excited to extend that capability throughout the consumer buying cycle.”
The deal, expected to close in the fourth quarter of 2017, will have no impact on Q3 results.