MeridianLink acquires loan fintech OpenClose for $65M

Publicly traded lending device company MeridianLink has bought OpenClose, a fintech corporate that makes a speciality of residential loan device answers for banks, credit score unions and loan lenders.

In a remark filed with the Securities and Change Fee, MeridianLink stated it will pay $65 million in money to shop for the Florida-based corporate.

“Combining the strengths of our organizations is superb for the trade as we additional permit our consumers to ship speedy, frictionless loan lending reports, from utility via ultimate,” Nicolaas Vlok, CEO of MeridianLink, stated in a remark.

As a part of the combination, MeridianLink’s loan consumers will have the ability to get admission to OpenClose’s point-of-sale device, known as Shopper Lend a hand. Relatedly, OpenClose’s consumers will have the ability to use MeridianLink’s mortgage pricing engine, which will run parallel loan insurance coverage pricing, an built-in price engine and comparability experiences.

The announcement comes in a while after MeridianLink, which is owned by means of personal fairness massive Thoma Bravo, posted its quarterly profits effects. The corporate earned $71.8 million in earnings within the 3rd quarter, with $44 million in gross benefit. MeridianLink advised traders that 21% of its overall earnings was once associated with the loan mortgage marketplace, down from 29% all through the 3rd quarter of 2021.

MeridianLink has been hungry for acquisitions during the last 12 months. In April, MeridianLink paid more or less $28 million to obtain StreetShares, which gives lending era to banks and credit score unions. It’s additionally bought TazWorks, a platform for background screenings, and Saylent Applied sciences, a cost answers dealer, during the last two years.

How loan lenders are qualifying the worth of fintech answers

HousingWire not too long ago spoke with Sue Woodard, senior marketing consultant to General Knowledgeable, concerning the techniques lenders can measure the effectiveness in their fintech answers and what they may be able to do to stay tempo with the virtual loan revolution.

Offered by means of: General Knowledgeable

Headquartered in Costa Mesa, California, MeridianLink says it supplies services and products to greater than 1,900 consumers.