Ellie Mae Enters Definitive Agreement with Thoma Bravo in USD 3.7 Billion Deal

Ellie Mae (NYSE: ELLI) announced today the Company has entered into a definitive agreement to be acquired by private investment firm Thoma Bravo, LLC, in an all-cash transaction. The deal values Ellie Mae, the leading cloud-based platform provider for the mortgage finance industry, at about USD 3.7 Billion. Ellie Mae shareholders will receive USD 99 in cash per share under the terms of the agreement.

The agreement was unanimously approved by Ellie Mae’s Board of Directors. It was recommended that stockholders vote their shares in favor of the transaction. The deal is expected to close the second or third quarter of 2019, subject to approval by Ellie Mae stockholders and regulatory authorities. The Company’s headquarters will remain in Pleasanton, California.

“Ellie Mae is leading the digital transformation of the residential mortgage industry and we look forward to building on the company’s successes and to our partnership through this next chapter of growth” said Holden Spaht, a Managing Partner at Thoma Bravo.

The agreement includes a 35-day period which permits Ellie Mae’s Board and advisors to actively seek alternative acquisition proposals. The Company reserves the right to terminate its merger with Thoma Bravo should a more advantageous proposal arise.

J.P. Morgan Securities LLC will serve as the exclusive financial advisor to Ellie Mae. Cooley LLP will serve as the Company’s legal advisor.

Thoma Bravo’s current agreement with Ellie Mae follows a series of three completed acquisitions in 2019. To start off the year, The Company acquired Veracode Software in an all-cash transaction valued at USD 950 Million. Thoma Bravo then moved on to close on acquisitions of cybersecurity leader Imperva, Inc., and software company Aucerna.

2 Comments
  1. Ben Lane 2 months ago
    Reply

    That’s a 47% premium on Ellie Mae’s stock price. And the market seems to like the deal. $ELLI is up 21% for the day so far.

  2. Johnny Velez 2 months ago
    Reply

    So long $ELLI. I’ll always remember when founder/CEO Sig Anderman used to make up a poem before each conference call.

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