Mortgagebot, the Mequon, Wis.-based provider of online mortgage rate search and loan application technology, was acquired by Canadian financial services technology provider Davis Henderson Corp. for US $231.8 million, the companies announced Thursday.
The acquisition expands Davis Henderson’s Web-based financial services technology offerings and increases its existing presence in the United States. It also gives the company additional reach into the mortgage market, which includes a Canadian mortgage loan origination system, along with the company’s other existing banking technology.
The deal is expected to close on April 13. Scott Happ, Mortgagebot’s founder, president and CEO, and the rest of the company’s existing executive management team will remain onboard.
Mortgagebot’s annual revenue was approximately $38.63 million in 2010 and after the acquisition it will be run as a separate U.S.-based division of Davis Henderson. The companies did not say yet if Mortgagebot will expand into the Canadian market. Mortgagebot’s current client base includes approximately 1,000 branch banks, community banks and credit unions, which the company claims is an 80% market share for its offerings.
Davis Henderson will fund the purchase by issuing $121.8 million in stock offerings and borrowing $115 million. Mortgagebot’s current majority owner is Spectrum Equity Investors, a private equity firm based in Boston with $4.7 billion under management.
