Ellie Mae Said to Consider Sale, Interview Advisers

Ellie Mae Inc., whose software is used to make one-third of all mortgages in the U.S., is considering a sale and has interviewed banks to manage the process, three people with knowledge of the matter said.

Ellie Mae may begin soliciting bids in the next two months, two people said, asking not to be identified because the process isnt public. The shares today rose to their highest since the company went public in April 2011.

The companys software offers ways of automating the mortgage process. Ellie Mae last week raised its forecast for full-year revenue to as much as $132.5 million, which would be a 30% increase from 2012 sales of about $102 million.

With the U.S. housing market recovering, Ellie Maes shares have gained about 57% from a 52-week low in February. Single-family home prices climbed in 87% of U.S. cities in the second quarter, the National Association of Realtors said today. Prices are rising as buyers, bolstered by improving employment, compete for a tight supply of properties.

Chief executive Sig Anderman said at an investor conference this week that the technology is currently used to fund and process about one third of all mortgage loans made in the U.S.

Lisa Laukkanen, an external spokeswoman for Ellie Mae, did not respond to calls and an email seeking comment on the potential sale.

Article source: http://www.nationalmortgagenews.com/dailybriefing/Ellie-Mae-Said-to-Consider-Sale-1038079-1.html

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