Atlanta-based Intercontinental Exchange said Thursday it has agreed to buy Ellie Mae, a cloud-based platform used by the mortgage finance industry.
The deal values Ellie Mae at $11 billion, including debt, and represents ICE’s largest acquisition ever. ICE, the owner of the New York Stock Exchange, has grown rapidly through acquisitions over two decades.
California-based Ellie Mae has digital technology used in the closing of home loans and is considered the largest player in that market. ICE is acquiring the company from Thoma Bravo, a private equity firm. Thoma Bravo had acquired Ellie Mae last year — and paid only $3.7 billion.
ICE executives told analysts that Ellie Mae’s revenues have grown rapidly since then because the coronavirus pandemic has spurred greater use of its digital tools, The Wall Street Journal reported. ICE executives added that they think that business will continue to expand rapidly.
In February, ICE acknowledged having approached eBay in an apparent attempt to purchase the online auction company but that “eBay has not engaged in a meaningful way.” At the time, ICE officials said they would keep looking for opportunities.
ICE last week reported revenues of $1.4 billion for the quarter ended June 30, up 8% from a year earlier and somewhat better than analyst expectations.
ICE’s share price was $94.40 in after-hours trading Thursday, down 3.1% from the day’s closing price, following the announcement of the acquisition.
Republican U.S. Sen. Kelly Loeffler is married to Jeff Sprecher, the founder and chief executive of ICE. Loeffler was an executive at ICE, leaving the company after she was named to the Senate by Gov. Brian Kemp.
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