Fintech company nCino, Inc. is expanding its mortgage market reach by acquiring SimpleNexus for $1.2 billion in stocks and cash.
SimpleNexus, a digital mortgage platform, was involved in more than one in seven mortgage originations in the US during the first nine months of 2021. It provides services for more than 300 mortgage companies and 41,000 loan originators across the country.
“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 Pierre Naudé, Chief Executive Officer of nCino.
“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.”
In a press release, nCino said the acquisition will expand its serviceable addressable market by $4 billion. Both companies operate per-seat subscription-based revenue models, resulting in more stable financial results that are not based on mortgage transaction volume.
Both companies will leverage each other’s software, allowing nCino to quickly develop mobile and point-of-sale offerings and furthering the adoption of the SimpleNexus platform by banks and credit unions.
“This is a truly exciting moment for SimpleNexus, and 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,” said Cathleen Schreiner Gates, Chief Executive Officer at SimpleNexus.
“Together, our best-in-class, cloud-native platforms will significantly strengthen how we serve our customers.”
The transaction is expected to close by the end of nCino’s fourth fiscal quarter ending January 31, 2022.