Takeover Of Mortgagebot Completed
TORONTO – Davis + Henderson said it raised $122 million in a secondary offering, which the financial services firm used to finance its acquisition of online mortgage origination provider Mortgagebot.
Under the terms of the deal, Davis + Henderson paid $231.8 million for Mequon, Wis.-based Mortgagebot to its owners, Spectrum Equity Investors IV, L.P. and affiliated funds, and Mortgagebot’s minority shareholders.
Mortgagebot had revenues of $37.7 million in 2010 and currently services about 980 community and regional financial institutions, predominantly banks and credit unions, in the U.S.
Mortgagebot was founded in 1997 as a division of Marshall & Ilsley Corp., then was spun off in 2001 when Banc One Stonehenge Capital Fund and GE Mortgage Insurance acquired majority stakes. In September 2005, Spectrum Equity Investors completed an $84 million recapitalization of Mortgagebot, buying out Banc One Stonehenge Capital Fund and GE Mortgage Insurance.