Publicly traded lending software firm MeridianLink has acquired OpenClose, a fintech company that specializes in residential mortgage software solutions for banks, credit unions and mortgage lenders.
In a statement filed with the Securities and Exchange Commission, MeridianLink said it would pay $65 million in cash to buy the Florida-based company.
“Combining the strengths of our organizations is great for the industry as we further enable our customers to deliver fast, frictionless mortgage lending experiences, from application through closing,” Nicolaas Vlok, CEO of MeridianLink, said in a statement.
As part of the integration, MeridianLink’s mortgage customers will be able to access OpenClose’s point-of-sale system, called Consumer Assist. Relatedly, OpenClose’s customers will be able to use MeridianLink’s loan pricing engine, which can run parallel mortgage insurance pricing, an integrated fee engine and comparison reports.
The announcement comes shortly after MeridianLink, which is owned by private equity giant Thoma Bravo, posted its quarterly earnings results. The company earned $71.8 million in revenue in the third quarter, with $44 million in gross profit. MeridianLink told investors that 21% of its total revenue was related to the mortgage loan market, down from 29% during the third quarter of 2021.
MeridianLink has been hungry for acquisitions over the last year. In April, MeridianLink paid roughly $28 million to acquire StreetShares, which provides lending technology to banks and credit unions. It’s also acquired TazWorks, a platform for background screenings, and Saylent Technologies, a payment solutions vendor, over the last two years.
Headquartered in Costa Mesa, California, MeridianLink says it provides services to more than 1,900 customers.