Under the terms of the agreement, which is still tentative, all Ellie Mae shareholders will receive $99.00 in cash per share.
The price per share represents a 47% premium to the 30-day average closing share price and 49% premium to the 60-day average closing price as of February 1.
The deal – which was announced in February – initially included a 35 day “go-shop” period, which allowed Ellie Mae’s board and advisors to actively initiate, solicit, encourage and potentially enter negotiations with other parties that might be interested in acquiring the software firm.
Ellie Mae has not disclosed whether other parties became involved in the solicitation process.
“The closing of this transaction represents the beginning of the next chapter in our digital mortgage journey as we work toward our North Star of automating everything automatable for the residential mortgage industry,” says Jonathan Corr, president and CEO of Ellie Mae, in a statement. “Thoma Bravo brings deep expertise and together we are committed to supporting our lenders’ success, fostering innovation and growth of the Encompass Digital Lending Platform and accelerating our value for our ecosystem of customers, partners and employees.”
J.P. Morgan Securities served as the exclusive financial advisor to Ellie Mae and Cooley served as the legal advisor to Ellie Mae.
Jefferies served as financial advisor to Thoma Bravo and Kirkland & Ellis served as legal advisor.
Financing for the transaction was being provided by Jefferies Finance.