Intercontinental Exchange, the company best known as the owner of the New York Stock Exchange, has announced it will acquire mortgage processing software company Ellie Mae for $11 billion including debt.
Intercontinental exchange is purchasing the company from the private equity firm Thoma Bravo who just acquired Ellie Mae for $3.7 billion in 2019. While the $11 billion price tag clearly represents a large premium to what the business sold at just 1 year ago, it’s predicated on a long history of growth.
Ellie Mae has grown revenue at a CAGR of roughly 30% since 2008, increasing from under $100 million to over $900 million in a span of just 12 years. The business is also highly profitable and is expected to post adjusted EBITDA margins of 52% for 2020.