Private equity firm Thoma Bravo has agreed to buy mortgage software provider Ellie Mae in an all-cash deal valued at $3.7 billion. The equity firm made the deal because Ellie Mae is considered a high-growth company with fairly limited profitability.
Ellie Mae’s stock price saw a significant drop in 2018 from a high of $117 down to about $83 before the deal was announced Tuesday. According to a Financial Times story, stockholders will receive $99 per share in cash, 21 percent above the company’s closing share price on Monday.
Ellie Mae’s board unanimously approved the takeover and said it had 35 days to solicit alternative buyout offers actively. The board noted that it could provide “no assurance” to its shareholders that the so-called go-shop period would result in a higher purchase price for the company.