Wilmington, North Carolina-based nCino Inc. has agreed to buy SimpleNexus in a cash and stock transaction worth about $1.2 billion, SimpleNexus announced in a release. Based in Lehi, SimpleNexus offers a digital platform for borrowers, loan officers, real estate agents and settlement service providers used throughout the home buying process.
As a publicly traded company, nCino specializes in cloud banking and said that its decision to purchase SimpleNexus is a natural expansion of the company into the point-of-sale mortgage market. NCino noted that SimpleNexus operates a “per-seat subscription-based revenue model, enabling the company to generate financial results that are more predictable, recurring and not based on mortgage transaction volumes.”
SimpleNexus, founded in 2011, serves more than 300 independent mortgage banks, over 80 depository banks and credit unions and more than 41,000 loan originators nationwide. The company said that during the first nine months of 2021, it was used in one out of seven mortgage transactions in the nation.
In October, SimpleNexus acquired LBA Ware, a software firm that offers incentive compensation management and business intelligence software for the mortgage industry.
“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, CEO at SimpleNexus. “Our industry-leading, mobile-first homeownership platform will complement nCino’s Bank Operating System to create even greater value for IMBs and financial institutions across multiple product lines and digital channels. Together, our best-in-class, cloud native platforms will significantly strengthen how we serve our customers.” Gates will remain as CEO of SimpleNexus after the transaction closes.
The transaction is expected to close by the end the fourth quarter and is subject to receipt of regulatory approvals and other customary closing conditions.