Davis + Henderson Corp., a provider of tech solutions to the finance industry, bought Avista Solutions Inc. this week to grow its platform through the addition of the web-based portal mortgage origination software program for community banks and credit unions.
The purchase price is $40 million payable in cash, and funded from D+H’s existing credit facilities. The addition of Avista is expected to provide accretion for D+H shareholders in 2012, on an adjusted net income basis.
The deal increases the breadth of technology products D+H offers to banks and other financial firms.
Avista's loan origination system technology operates through the Internet, generating revenue on a subscription-fee basis. Avista's program will complement D+H's SaaS consumer point of sale mortgage origination platform that currently provides services to 1,100 U.S. banks and credit unions through D+H's Mortgagebot subsidiary.
"This acquisition is fully aligned to D+H’s 'follow your customer' approach – in fact, customers have told us unequivocally that they want us to extend our offering with an LOS platform," said Gerrard Schmid, CEO of D+H. "With Avista, we’ve added an innovative, fast growing LOS business featuring proven capabilities that are highly synergistic to those we offer through Mortgagebot."