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Ellie Mae To Be Taken Private By Thoma Bravo In $3.7 Bln All-cash Deal

Ellie Mae, Inc. (ELLI) on Tuesday agreed to be acquired by private equity investment firm Thoma Bravo, LLC in an all-cash deal that values Ellie Mae at an aggregate equity value of about $3.7 billion. Ellie Mae is a cloud-based platform provider for the mortgage finance industry.

Under the terms of the deal, each Ellie Mae shareholder will receive $99.00 in cash per share, representing a 20.9 percent premium over Monday's closing share price of $81.92.

Ellie Mae's Board of Directors unanimously approved the deal and recommended that stockholders vote their shares in favor of the transaction. Closing of the transaction is subject to approval by Ellie Mae stockholders and regulatory authorities and the satisfaction of customary closing conditions.

Ellie Mae's headquarters will remain in Pleasanton, California, with regional offices across the United States. The deal is expected to close in the second or third quarter of 2019 and is not subject to a financial condition.

The agreement includes a 35 day "go-shop" period, which permits Ellie Mae's Board and advisors to actively initiate, solicit, encourage, and potentially enter negotiations with parties that make alternative acquisition proposals.

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