Intercontinental Exchange (ICE), an Atlanta-based company that owns exchanges for financial and commodity markets and operates 12 regulated exchanges, has entered into an agreement to acquire Simplifile LC Of Provo. Simplifile operates a network connecting agents and jurisdictions to record mortgage records, serving as an electronic liaison between lenders, settlement agents and county recording offices.
The acquisition of Simplifile expands the ICE Mortgage Services portfolio to support the residential lending industry’s shift to digitization, the company said.
ICE will pay $335 million to acquire Simplifile, which has no debt. The transaction is expected to close in the third quarter of this year. Upon closing, Simplifile, which has approximately 200 employees, will continue to be based in Provo and operate under the Simplifile name.
“Originators, consumers, and investors can obtain significant benefits and savings as the real estate process shifts from paper-based to digital transactions. Simplifile understood this trend early, uniquely solving for the critical aspect of submitting required documents into the public record in a seamless, auditable and transparent method,” said Chris McEntee, president of ICE Mortgage Services. “By connecting lenders, settlement agents and counties through a robust network, Simplifile will enhance ICE’s efforts to further streamline a legacy process ripe for innovation,” McEntee added.
Simplifile was founded in 2000 with the goal of digitizing the closing process of the real estate industry. Starting with Utah County, it began the process of signing all 3,594 mortgage recording jurisdictions in the U.S. Simplifile today connects 1,922 counties in the United States, representing over 80 percent of the U.S. population. The company has delivered a consistent history of revenue growth and has been profitable every year since its founding.
“We’ve seen how ICE has helped to transform markets going through an analog-to-digital conversion and has made them more transparent and efficient for all participants,” said Paul Clifford, founder and president of Simplifile. “We are closely aligned with ICE’s vision as it applies to the residential mortgage industry and, as we become part of Intercontinental Exchange, our team at Simplifile will continue our efforts to simplify the industry for all of its stakeholders.”