Ellie Mae announced Thursday that it will acquire Velocify, a sales acceleration platform, for $128 million in cash. The transaction is expected to close in the fourth quarter of 2017 and will not impact third-quarter financials, the company said.
“As part of our comprehensive strategy to deliver the first true digital mortgage to the industry, we are helping lenders to originate more loans, reduce costs, and complete the entire mortgage process faster,” said Jonathan Corr, president and CEO of Ellie Mae. “The combination of Velocify’s solution with our Encompass CRM and Encompass Consumer Connect solutions will accelerate our delivery of the most robust digital mortgage solution in the market.”
According to Ellie Mae’s press release on the acquisition, Velocify’s lead management solutions enable sales teams to accelerate lead engagement, and implement effective workflows, ultimately helping lenders find and convert more leads, faster. Many of Ellie Mae’s Encompass customers already use the Velocify solution, the company said.
“A digital transformation is occurring across the financial services industry, especially in the mortgage vertical in which Velocify has a leading position,” said Nick Hedges, president and CEO of Velocify. “The team at Velocify has built the leading software solution for consumer sales engagement during the early stages of the sales process. By joining forces with Ellie Mae we are very excited to extend that capability throughout the consumer buying cycle.”
HousingWire recognized both Ellie Mae and Velocify in the 2017 HW Tech100 awards. That award coverage noted that through lead management software, automated dialing, lead scoring and other tools, Velocify has helped more than 1,500 companies and 650 lenders automate and improve borrower response times and closing rates.
“The acquisition will enable us to provide the first combined solution that helps lenders turn consumer interest into applications by offering a personalized, high-tech and human-touch experience,” Corr said. “Going forward we will empower lenders’ sales teams to keep pace with the speed of opportunity, drive down costs of origination through greater lead capture and conversion, and improve productivity through actionable selling insights.”