Intercontinental Exchange Completes Acquisition of Ellie Mae from Thoma Bravo
04 September 2020 - 10:30PM
Business Wire
Intercontinental Exchange (NYSE: ICE), a leading operator of
global exchanges and clearing houses and provider of mortgage
technology, data and listing services, today announced that it has
received regulatory approval and fully completed its $11 billion
acquisition of Ellie Mae from leading private equity firm Thoma
Bravo.
“We are excited to begin the next important chapter in our
journey to digitize the residential mortgage industry,” said
Jeffrey C. Sprecher, Founder, Chairman and CEO of Intercontinental
Exchange. “Ellie Mae’s industry leadership and best-of-breed
technology will better enable us to further accelerate the
automation of the mortgage origination workflow, which will benefit
stakeholders across the production chain, including consumers.”
Ellie Mae was founded in 1997 with a mission to automate and
digitize the trillion-dollar residential mortgage industry. 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 participating on their open network who provide liquidity
to the market. Lenders rely on Ellie Mae to securely manage and
facilitate the exchange of data across the ecosystem to enable the
origination of mortgages, while maintaining strict adherence to
various local, state and federal compliance requirements.
Intercontinental Exchange’s efforts to help automate the
mortgage workflow began with its majority investment in the
Mortgage Electronic Registrations System (MERS) in 2016, which it
fully acquired in 2018. The strategy continued with the acquisition
of Simplifile in 2019, furthering a focus on digitizing the closing
and post-closing process for U.S. mortgages. The core focus of
Ellie Mae's technology, expertise and network is in the mortgage
origination process, connecting brokers, underwriters and lenders.
With all three of these entities, MERS, Simplifile and Ellie Mae
working together as part of ICE Mortgage Technology, the expanded
platform will, for the first time, bring together all of the key
stakeholders from origination to final settlement in one digital
mortgage ecosystem.
Key Third Quarter 2020 Financial Metrics:
Based on a closing date of September 4th, 2020 and an allocation
to ICE based on the number of business days following completion,
ICE currently expects the Ellie Mae transaction to contribute the
following to its third quarter 2020 results:
- Revenue of $67 million to $72 million
- Adjusted operating expense1 of $34 million to $36 million
- Interest expense of $11 million to $12 million
- Approximately 5 million weighted average diluted shares
outstanding, which are expected to result in total weighed average
diluted shares outstanding of 551 million to 554 million in the
third quarter of 2020.
About Intercontinental Exchange
Intercontinental Exchange (NYSE: ICE) is a Fortune 500 company
formed in the year 2000 to modernize markets. ICE serves customers
by operating the exchanges, clearing houses and information
services they rely upon to invest, trade and manage risk across
global financial and commodity markets. A leader in market data,
ICE Data Services serves the information and connectivity needs
across virtually all asset classes. As the parent company of the
New York Stock Exchange, the company is the premier venue for
raising capital in the world, driving economic growth and
transforming markets.
Trademarks of ICE and/or its affiliates include Intercontinental
Exchange, ICE, ICE block design, NYSE and New York Stock Exchange.
Information regarding additional trademarks and intellectual
property rights of Intercontinental Exchange, Inc. and/or its
affiliates is located at
http://www.intercontinentalexchange.com/terms-of-use. Key
Information Documents for certain products covered by the EU
Packaged Retail and Insurance-based Investment Products Regulation
can be accessed on the relevant exchange website under the heading
“Key Information Documents (KIDS).”
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995 -- Statements in this press release regarding
Ellie Mae, including expected revenue, expected adjusted operating
expense, expected interest expense and expected weighted average
diluted shares outstanding for the month and three months ended
September 30, 2020, that are not historical facts are
"forward-looking statements" that involve risks and uncertainties.
For a discussion of additional risks and uncertainties, which could
cause actual results to differ from those contained in the
forward-looking statements, see ICE's Securities and Exchange
Commission (SEC) filings, including, but not limited to, the risk
factors in ICE's Annual Report on Form 10-K for the year ended
December 31, 2019, as filed with the SEC on February 6, 2020.
This release includes non-GAAP measures that exclude certain
items we do not consider reflective of our cash operations and core
business performance. We believe that the presentation of these
non-GAAP measures provides investors with greater transparency and
supplemental data relating to our financial condition and results
of operations. These adjusted non-GAAP measures should be
considered in context with our GAAP results.
About Ellie Mae
Ellie Mae is the leading cloud-based platform provider for the
mortgage finance industry. Ellie Mae’s technology solutions enable
lenders to originate more loans, lower origination costs, and
reduce the time to close, all while ensuring the highest levels of
compliance, quality and efficiency. Visit EllieMae.com or call
(877) 355-4332 to learn more.
About Thoma Bravo
Thoma Bravo is a leading private equity firm focused on the
software and technology-enabled services sectors. With a series of
funds representing more than $45 billion in capital commitments,
Thoma Bravo partners with a company's management team to implement
operating best practices, invest in growth initiatives and make
accretive acquisitions intended to accelerate revenue and earnings,
with the goal of increasing the value of the business. The firm has
offices in San Francisco and Chicago. For more information, visit
thomabravo.com.
1 Adjusted operating expenses excludes the amortization of
acquisition-related intangibles related to the Ellie Mae
acquisition. At the time of this release, we cannot reasonably
estimate the GAAP operating expenses due to the unknown amount of
amortization acquisition-related intangibles, which are currently
being valued by a third party and are expected to be disclosed when
we report our third quarter results.
ICE-CORP
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version on businesswire.com: https://www.businesswire.com/news/home/20200904005296/en/
ICE Media Contact: Josh King Josh.King@theice.com
212-656-2490 ICE Investor Contact: Warren Gardiner
Warren.Gardiner@theice.com 770-835-0114 Ellie Mae Media
Contact: Erica Bigley Erica.Bigley@elliemae.com 925-227-5913
Thoma Bravo Media Contact: Megan Frank mfrank@thomabravo.com
212-731-4778
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