Wolters Kluwer to Acquire Digital Lending Software Provider in $ 279.9 Million Deal
ST. CLOUD – Wolters Kluwer Governance, Risk & Compliance has signed an agreement to acquire a cloud-based digital lending software provider.
Wolters Kluwer, who employed 491 people in Saint-Cloud as of April 2020, according to the city, will acquire eOriginal for around $ 279.9 million in cash. The deal was announced Thursday and is expected to close by the end of the year.
“This acquisition positions us as the leading provider of digital lending solutions, covering all workflows from loan approval to document preparation and closing, with certainty of compliance,” said Steven Meirink, Executive Vice President and General Manager of Compliance Solutions Wolters Kluwer GRC.
The acquisition expands Wolters Kluwer GRC’s business to include digital loan closing and storage.
“The positive change is that we welcome 100 new colleagues to Wolters Kluwer Compliance Solutions,” said Paul Lyon, Global Corporate Communications Director of Wolters Kluwer GRC, in a written response to a St. Cloud Times interview request.
Compliance Solutions is globally managed from Minnesota. Wolters Kluwer employs around 700 people in its St. Cloud and Minneapolis offices, Lyon said. This is an increase from 575 employees in 2017.
“There is absolutely no impact on any of our operations in St. Cloud, anywhere else in Minnesota, or anywhere in the world for that matter,” he said.
St Cloud takes root in Bankers Systems
Bill Clemens founded Bankers Systems in St. Cloud in 1952 to sell bank forms. The focus of the company changed with the passage in 1969 of the federal Truth in Lending Act to help banks navigate the new regulations, which led to rapid growth.
In 2002, then CEO and Chairman Bob White said, “We realized that if we created high quality documents that took into account compliance issues, we could use them as templates for many financial institutions. , thus reducing individual expenses for each of our clients. “
The company was sold in 1994, then sold again in 1999 to Wolters Kluwer for $ 190 million, according to a New York Times report on the sale.
Clemens and his wife Virginia were leading philanthropists in central Minnesota, lending their names to St. Cloud’s Clemens Garden and Clemens Stadium at St. John’s University, among many other contributions.
eOriginal was founded in 1996 and is headquartered in Baltimore, Maryland. It employs around 100 people.
The company serves more than 650 customers in the United States, including banks, mortgage lenders, consumer lenders, and auto and equipment finance lenders.
“Its platform enables lenders and their partners to create, store and manage digital assets from close to the secondary credit market,” according to a press release from Wolters Kluwer.
Its solutions include eAsset, SmartSign, and ClosingCenter, which help manage assets, provide electronic signatures, and enhance close experiences.
EOriginal’s revenue has grown at a double-digit organic growth rate over the past three years, according to Wolters Kluwer. eOriginal expects to achieve unaudited revenue of approximately $ 37.5 million in 2020, of which nearly 95% is recurring.
Wolters Kluwer and eOriginal have had a strong partnership since 2016, Lyon said. A joint team will create the integration plan.
The acquisition “creates an industry-leading end-to-end digital lending solution,” according to Lyon.
“Our shared vision is to enable our clients with a single solution to issue, close, manage and analyze their loans to maximize capital efficiency, regardless of the size of their organization,” said Lyon.
News Director Lisa Schwarz contributed to this report.