Mortgage technology provider SimpleNexus has agreed to be acquired by cloud banking solutions developer nCino Inc., in a $1.2 billion deal that will expand nCino’s capabilities to serve the U.S. point-of-sale mortgage market.
SimpleNexus provides services to more than 41,000 mortgage loan originators who work at upwards of 300 independent mortgage banks and 80-plus banks and credit unions. The company claims its software touched more than 1 in 7 mortgages originated in the first nine months of the year.
For nCino, the acquisition expands the company’s serviceable addressable market by more than $4 billion, and “furthers its competitive position as the single digital banking platform of choice.”
The companies said they’ll work together to “continue innovating for the independent mortgage bank community while accelerating the adoption of the SimpleNexus homeownership platform by U.S. banks and credit unions, where nCino currently has over 1,100 customers.”
SimpleNexus’ consumer front-end technology and domain expertise can also be used to accelerate the development of nCino’s mobile and point-of-sale offerings across additional lines of business, the companies said.
SimpleNexus has positioned itself as the provider of an end-to-end “homeownership platform” spanning consumer engagement, origination, closing and business intelligence.
By helping lenders manage their teams and stay connected with borrowers and real estate partners, the company promises to deliver a “measurable return on investment in the form of reduced turn times, increased loan application submissions and more referral business.”
“Just as nCino has transformed the process for commercial, small business and retail lending, treasury management and account opening, SimpleNexus has streamlined the many stages of the homeownership process into a single, seamless journey,” said nCino CEO Pierre Naudé, in a statement. “Their innovative solution and deep subject matter expertise in consumer front-end technology will extend our capabilities to the U.S. point-of-sale mortgage space and enhance nCino’s mobile and point-of-sale offerings, unlocking additional opportunities and value for our customers and their clients.”
The deal, which is expected to close by Jan. 31, 2022, calls for nCino to acquire SimpleNexus for approximately $240 million in cash and approximately 13.2 million shares of nCino common stock.
BofA Securities is serving as financial advisor to nCino, and Sidley Austin LLP is serving as its legal counsel. Willkie Farr & Gallagher LLP is serving as legal counsel to SimpleNexus.
Last month, SimpleNexus announced its first acquisition — Macon, Georgia-based software developer LBA Ware.
In a statement, SimpleNexus CEO Cathleen Schreiner Gates said, “we are eager to be joining forces with the nCino team, with whom we share similar technology visions, strong cultural alignment and a commitment to taking care of our employees and customers.”