Lending and default servicing technology firm Mortgage Cadence expanded its platform of tech solutions for lenders and financial firms by acquiring Prime Alliance Solutions.
With the acquisition, Denver-based Mortgage Cadence is gaining a subsidiary with an established market share in the lending technology space and an existing client base of credit unions and regional lenders.
Neither firm disclosed the value of the transaction. As part of the deal, Prime Alliance Solutions will operate as a subsidiary of Mortgage Cadence.
Michael Detwiler, chief executive officer of Mortgage Cadence, called it a "marriage that is meant to be." In an interview with HousingWire, Detwiler said Mortgage Cadence had a stated goal of growing through strategic acquisitions. Despite that goal, the firm turned away 13 other potential acquisition targets before agreeing to buy Prime Alliance.
"We have been very contemplative. We are not going to do acquisitions just to enhance our top line. We have to find companies that are similar to ours and companies that have technology that will ultimately enhance the customer experience," said Detwiler.
Edina, Minn.-based Prime Alliance fit Mortgage Cadence's bill.
Mortgage Cadence cites Prime Alliance's strong consumer interfacing portal and its compliance offerings as competitive advantages in a marketplace where mortgage tech firms are dealing with demand for strong customer interaction and compliance tools.
"We have always tried to create a unique customer experience," said Joe Brancucci, founder and CEO of Prime Alliance Solutions. "Mortgage Cadence has done the same thing. We want Prime Alliance to continue helping our customers remain the best-regarded mortgage lenders in the industry. Doing so requires a strong partner with similar aspirations and talents, and that partner is Mortgage Cadence," said Brancucci.
Mortgage Cadence believes the acquisition will help it solidify its reputation as an end-to-end technology provider that can support top 10 banks, lending firms and the growing credit union space, where Prime Alliance already has a strong foothold.
Prime Alliance, which was looking for a buyer, turned down five suitors before agreeing to Mortgage Cadence's acquisition offer. "It came down to how the cultures met, Brancucci said. "The Mortgage Cadence relationship is the one we wanted."
To date, Mortgage Cadence is known for its enterprise lending solutions that allow financial firms to use data-driven automation tools to control workflow. The company offers tech solutions that manage and score lending performance. Meanwhile, Prime Alliance technology offers paperless, electronic mortgage lending. About 30% of credit union mortgages are originated from PrimeAlliance's Lending Suite product. The firm's products also support online loan applications, origination software, loan servicing and closing and settlement services.