ADFITECH Inc. and Mortgage Connect LP, through one of its controlled subsidiaries, has entered into a definitive merger agreement under which Mortgage Connect will acquire all of the outstanding shares of ADFITECH for an aggregate purchase price of approximately $29 million.
Upon closing of the merger, ADFITECH will become a subsidiary of Mortgage Connect.
“Following a comprehensive review of strategic alternatives, our board has unanimously determined that this agreement is in the best interest of the company and our stockholders,” says Jon Sion, chairman of the board of ADFITECH. “We view this transaction as appropriately recognizing the value of ADFITECH’s market leading services.”
For 40 years, ADFITECH is a provider of quality control (QC), due diligence, fulfillment and document management services to the mortgage industry. Mortgage Connect is a nationwide provider of mortgage origination, servicing and capital market solutions. The combination of the two companies will provide benefits to customers by offering seamless life-of-loan services, enhanced service levels and technology allowing for digitalization of every touch point.
“This combination creates a national leader of services for the mortgage industry with a strengthened foundation better able to serve our clients both in times of uncertainty in interest rates and origination volumes as well as growth,” states Tom Apel, CEO of ADFITECH. “Further, our partnership with Mortgage Connect creates an opportunity to continue to accelerate our technology investments that will create a truly differentiated provider for the Mortgage Industry.”
“After a significant amount of time spent looking for the perfect partner, the best choice was ADFITECH, a company with a history of strong leadership and one that shares the same standards of innovation and of creating the best possible customer experience,” comments Jeff Coury, CEO of Mortgage Connect. “The purchase was not only a natural cultural fit, but also delivers a breadth of products and services that is unmatched in the industry.”