Del Mar Datatrac Inc., a maker of software used by some 200 mortgage lenders, was acquired by Ellie Mae, a Pleasanton public company for $17.2 million in cash plus $8 million in future cash payments over three years, the companies announced Aug. 16.
Del Mar Datatrac’s operations, including its sales, technology, support and business development teams, will remain in San Diego where about 42 of its 60 employees work.
DMD’s software provides automated data gathering and storage of the myriad documents associated with processing and funding mortgages. Ellie Mae is also a provider of automated software solutions for mortgage lenders. The acquiring company said DMD’s software could add about 20,000 users to its network of more than 50,000 users.
Ellie Mae revised its financial guidance for 2011 to finish from $51 million to $53 million, and its adjusted net income to range from $1.2 million to $2.2 million.
DMD, which was founded in 1991, said it did $10 million in revenue last year. The firm was owned by TVC Capital, which purchased back the business in 2008 after selling it to Fiserv Inc. in 2005 at the height of the housing bubble.
— Mike Allen