Toronto company acquires Mortgagebot LLC
Toronto-based Davis + Henderson Corp. has entered into an agreement to acquire Mortgagebot LLC of Mequon for $231.8 million in cash.
The acquisition is expected to close on or about April 13, subject to customary closing conditions.
Mortgagebot is the leading provider of web-based mortgage point-of-sale solutions in the United States. Founded in 1997, Mortgagebot provides a range of consumer direct, loan officer and branch and call centre mortgage origination solutions for nearly 1,000 banks and credit unions.
"By acquiring Mortgagebot, D+H further advances our strategic diversification agenda, we extend the range of integrated solutions we offer within the financial services marketplace, and we add an important dimension to our capabilities in a core lending services area," said Bob Cronin, chief executive officer of D+H. "As a proven business with a track record of innovation and growth, Mortgagebot gives us a solid position with a large number of new customers within the US financial services marketplace. We are very pleased that Scott Happ, Mortgagebot’s founder, president and CEO, and his team will be joining us to execute our shared growth plans."
"Mortgagebot has experienced solid growth by capitalizing on its many strengths – including its leading market share and reputation, strong customer service ethic, and innovative technology – which combine to create strong value to customers," said Gerrard Schmid, President and COO of D+H. "The current adoption rate among U.S. financial institutions for consumer-directed online mortgage origination is estimated to be about 20 percent and growing. As a market leader, Mortgagebot is positioned well to participate in this growing target market. "