|Bid||100.93 x 800|
|Ask||101.02 x 900|
|Day's Range||95.28 - 101.11|
|52 Week Range||63.51 - 101.93|
|Beta (5Y Monthly)||0.55|
|PE Ratio (TTM)||26.11|
|Earnings Date||Oct. 29, 2020|
|Forward Dividend & Yield||1.20 (1.23%)|
|Ex-Dividend Date||Sep. 15, 2020|
|1y Target Est||107.69|
(Bloomberg) -- Jeff Sprecher, chief executive officer of Intercontinental Exchange Inc., continued his foray into the mortgage market with the purchase of cloud-based platform provider Ellie Mae.Atlanta-based ICE, as the company is known, agreed to buy Ellie Mae from private equity firm Thoma Bravo LLC in a deal that values the mortgage-lending platform at about $11 billion. The owner of the New York Stock Exchange will pay a combination of stock and cash for Pleasanton, California-based Ellie Mae, according to a statement Thursday. Further terms weren’t disclosed.Ellie Mae will allow ICE to expand its own mortgage-servicing business. In 2017, Sprecher said the mortgage market needed a complete overhaul to shift from a paper-based transaction system to an electronic method. “It’s so obvious to us that the market is going to become more electronified,” Sprecher said at the time.In 2016, ICE gained a majority stake in Mortgage Electronic Registration Systems Inc., or MERS, which documents the ownership and resale of about half of U.S. home loans.Ellie MaeMore than 40% of annual U.S. mortgage originations are processed using Ellie Mae software, according to Erica Bigley, a company spokesperson. That gives Ellie Mae insight into trends such as borrowers’ credit profiles and changing underwriting standards. ICE reported $90 million in mortgage-servicing revenue for the first half of 2020, a 40% increase from a year earlier. Sprecher has said that mortgage servicing is the fastest-growing business on the company’s platform.“We have a business that is part of nearly every U.S. mortgage closing process, collecting, marshaling and storing critical data,” Sprecher said on an earnings call in July. “U.S. mortgage back-office workflow is ripe for automation and greater efficiency.”Bloomberg LP, the parent of Bloomberg News, competes with ICE in offering mortgage-related data and analysis.Intercontinental Exchange shares dipped as much as 2% in extended New York trading after the announcement. They rose $1.30 to $97.46 in regular trading and have gained 5.3% this year.(Updates with ICE strategy, previous purchase starting in first paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Strengthening its position in mortgage servicing has been a key focus for the owner of the New York Stock Exchange in recent years, having made two acquisitions since 2016 to support its business in the sector. The purchase price is a significant jump on the $3.7 billion which private equity firm Thoma Bravo laid out to take Ellie Mae private 18 months ago, although ICE Chairman and Chief Executive Jeffrey Sprecher called the transaction a "one-of-a-kind opportunity." Sprecher told an analysts' call that the onset of the global coronavirus pandemic this year had accelerated the sector's digitization, as it has prevented functions around buying homes or refinancing loans from being completed in-person.
Intercontinental Exchange, Inc. (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, today reported July 2020 trading volume and related revenue statistics, which can be viewed on the company’s investor relations website at https://ir.theice.com/ir-resources/supplemental-information in the Monthly Statistics Tracking spreadsheet.