With the acquisition, nCino will enhance its digital banking platform. Here are the top-line bullets you need to know.
nCino, a cloud-based banking services provider, has acquired SimpleNexus, a digital mortgage solutions provider, for $1.2B in a cash and stock deal. The deal is expected to close by the end of January 2022.
Who are the parties to the deal?
- SimpleNexus: Utah-based SimpleNexus develops an end-to-end digital technology platform that connects borrowers, lenders, loan officers, and real estate agents to streamline homeownership and mortgage financing processes. It claims that around 14% of US mortgages have used its technology over the past 9 months. The company has partnerships with more than 80 banks and credit unions, 300+ independent mortgage banks (IMBs), and 41K+ loan originators, and it is supported by a team of 200 people. In October 2021, it acquired LBA Ware, a mortgage lending software company, to bring prominent lenders and a suite of mortgage technology integrations into its portfolio.
- nCino: North Carolina-based nCino operates a cloud banking platform that enables lenders to manage the entire loan lifecycle. On average, its clients have experienced a 127% increase in account opening rates, a 25% increase in efficiency, a 40% reduction in loan closing time, and a 92% reduction in data re-entry. The company has established partnerships with around 1,200 global financial institutions, and it has around 1,200 employees. Some of its clients include Barclays, Santander’s, TD Bank, and Thinktank.
Why does the market matter?
- The global digital lending platform market is expected to grow at a CAGR of 16.7% and reach a value of $20.3B by 2027, according to Allied Market Research.
- As of March 2021, mortgage tech funding had surpassed the $1.2B mark — marking a 24% increase from 2020’s year-end total.
- Homeownership demand surged amid the pandemic, increasing the need for solutions to manage financing and mortgage loans. Several lenders filed for IPOs during this period.
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