Deals
Ellie Mae 26% Bump Seen as Tech Meets Housing: Real M&A
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Ellie Mae Inc., the provider of software used by mortgage lenders to make home loans, could still reward shareholders with a 26 percent gain after surging to a record last week.
The company, which grew from a startup in the San Francisco Bay area to an $796 million provider of technology used in processing one-third of all U.S. residential mortgages, is considering a sale and may begin soliciting bids in the next two months, people with knowledge of the matter told Bloomberg News last week. Investors including Jacob Asset Management LLC said Ellie Mae warrants a higher stock price than its $30.07 a share yesterday, and acquirers may be willing to pay up to get a hold of its growth prospects.