Cloud banking provider nCino has signed a definitive agreement to acquire digital mortgage platform SimpleNexus in a stock and cash transaction worth nearly $1.2bn.
The transaction, which includes $240m in cash and nearly 13.2 million shares of nCino common stock, is expected to close by 31 January 2022.
Go deeper with GlobalData
SimpleNexus offers services to over 300 independent mortgage banks (IMBs), more than 80 banks and credit unions, and over 41,000 loan originators in the US.
The acquisition not only enhances nCino’s capabilities in the US point-of-sale mortgage market, but it also expands its serviceable addressable market by over $4bn and augments its position as a digital banking platform.
The firms will work together to accelerate the adoption of the SimpleNexus’ platform by US banks and credit unions.
They also plan to leverage SimpleNexus’ consumer front-end technology to further the development of nCino’s mobile and POS offerings across other lines of business.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDatanCino CEO Pierre Naudé said: “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.
“Their innovative solution and deep subject matter expertise in consumer front-end technology will extend our capabilities to the US 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.”
SimpleNexus CEO Cathleen Schreiner Gates said: “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.”
The transaction is subject to receipt of regulatory approval and customary closing conditions.
