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Ellie Mae, Inc. (ELLI)

- NYSE
  • Jan. 2, 2014, 1:33 PM
    • IMF News, which reported in November Ellie Mae (ELLI -0.1%) has seen M&A  interest from three P-E firms, reports today the mortgage origination software firm is still weighing buyout offers. Shares briefly spiked higher, but have given back their gains.
    • Shortly after IMF News' November scoop, dealReporter stated Ellie Mae's would-be buyers have valuation concerns. The company's sales have been pressured lately by declining mortgage applications.
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  • Nov. 19, 2013, 2:01 PM
    • After jumping last week on an IMF News report stating P-E investors have shown interest in Ellie Mae (ELLI -3.9%), shares have slipped on a report from dealReporter indicating would-be buyers have valuation concerns.
    • Ellie Mae currently trades at 20x 2014E EPS exc. cash/investments.
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  • Nov. 1, 2013, 7:03 PM
    • Its shares propped up in recent months by M&A hopes, Ellie Mae (ELLI -16.9%) tumbled to levels last seen in July after missing Q3 estimates and issuing below-consensus Q4 guidance, while blaming (among other things) a major slowdown in mortgage applications.
    • Dougherty has cut the mortgage-origination software vendor to Neutral. The firm sees declining loan origination volumes leading Ellie to "face stiffer headwinds" in 2014, and is also worried heavy spending - opex rose 28% Y/Y in Q3 - will pressure margins.
    • But Needham and FBR defended the company: The former says Ellie's report is "[by] no means a disaster" given industry trends, and the latter is pleased with ongoing user and bookings growth; active users for Ellie's core Encompass loan origination platform rose 39% Y/Y to 93.6K.
    • In tandem with its report, Ellie Mae announced it's acquiring MortgageCEO, a provider of CRM (sales) and marketing automation (ad campaign management) software for mortgage providers. Ellie Mae asserts MortgageCEO's offerings complement Encompass, and will help its clients drive loan volumes.
    • The purchase comes at a time when M&A interest in cloud marketing automation firms has heated up.
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  • Sep. 3, 2013, 4:28 PM
    • Sources claim Ellie Mae's (ELLI +3.2%) sales process is "expected to begin in the next few weeks, and a number of parties, particularly private equity firms, are expected to take a look."
    • Bloomberg reported a month ago the mortgage origination software vendor is "considering a sale and has interviewed banks to manage the process."
    • Ellie Mae spiked higher just before the close thanks to Reuters' report. Shares are 8% below their 52-week high of $32.61 (set after Bloomberg's report).
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  • Aug. 8, 2013, 3:53 PM
    • Three sources tell Bloomberg Ellie Mae (ELLI +11%) is "considering a sale and has interviewed banks to manage the process."
    • Ellie Mae, which has jumped to new highs on the news, reportedly might start "soliciting bids in the next two months."
    • The mortgage origination software vendor saw its shares take off last Friday thanks to the strong Q3 guidance included within its Q2 report.
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  • Jul. 15, 2013, 4:58 PM
    Accenture (ACN) makes another acquisition, snapping up loan origination software/electronic document services firm Mortgage Cadence for an undisclosed sum. Accenture says Mortgage Cadence, which asserts its software is easier to implement and configure than traditional loan origination offerings, will be added to its credit services arm. The purchase could lead to tougher competition for fellow loan origination software firm Ellie Mae (ELLI). (other Accenture acquisitions: Acquity Group, Fjord, avVenta)
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Company Description
Ellie Mae Inc together with its subsidiaries is a provider of on-demand software solutions & services for residential mortgage industry. Its mortgage management solutions help streamline & automate the process of originating & funding new mortgage loans.
Sector: Technology
Country: United States