Print
Banking & Finance

NCino To Buy SimpleNexus In Deal Valued At $1.2B

By Staff Reports, posted Nov 16, 2021
Wilmington-based nCino, a cloud banking company, plans to buy mortgage software firm SimpleNexus. (File photo)
Wilmington-based cloud banking software firm nCino Inc. plans to buy a digital mortgage platform in a transaction valued at $1.2 billion, according to an announcement Tuesday.

nCino (Nasdaq: NCNO) has entered into a definitive agreement to acquire SimpleNexus for about $240 million in cash and 13.2 million shares of nCino common stock, a news release stated.

The transaction is expected to close by the end of nCino’s fourth fiscal quarter, Jan. 31, and is subject to regulatory approvals and other closing conditions.
 
“When we first started nCino, our mission was clear: to transform the financial services industry through innovation, reputation and speed. Today, we take another major step forward in executing on that mission by welcoming the talented team at SimpleNexus and their best-in-class, cloud-based homeownership platform into the nCino family,” said Pierre Naudé, CEO of nCino, in a release. “Just as nCino has transformed the process for commercial, small business and retail lending, treasury management and account opening, SimpleNexus has streamlined the many stages of the homeownership process into a single, seamless journey.

"Their innovative solution and deep subject matter expertise in consumer front-end technology will extend our capabilities to the U.S. point-of-sale mortgage space and enhance nCino’s mobile and point-of-sale offerings, unlocking additional opportunities and value for our customers and their clients.”
 
SimpleNexus serves more than 300 independent mortgage banks (IMBs), over 80 banks and credit unions and more than 41,000 loan originators nationwide. During the first nine months of 2021, more than 1 in every 7 mortgage originations in the U.S. leveraged SimpleNexus’ software, the release stated.
 
"The acquisition of SimpleNexus initially expands nCino’s serviceable addressable market by over $4 billion and furthers its competitive position as the single digital banking platform of choice," according to the release.

While nCino's portfolio of software products - all part of its basic Bank Operating System - has grown to include both lending and deposit functions for financial institutions of all sizes, this purchase gives nCino access to a whole new market: the various participants in retail mortgage lending. The fact that the platform is mobile and user-focused "enables loan officers, borrowers, real estate agents and settlement agents to manage the homeownership journey in the palm of their hands," the release stated.

nCino and SimpleNexus will work together to continue innovating for the IMB community while accelerating the adoption of the SimpleNexus homeownership platform by U.S. banks and credit unions, where nCino currently has more than 1,100 customers, according to the release.

The two companies are also expected to work together to leverage SimpleNexus’ consumer front-end technology and domain expertise to accelerate the development of nCino’s mobile and point-of-sale offerings across additional lines of business. 
 
“Our industry-leading, mobile-first homeownership platform will complement nCino’s Bank Operating System to create even greater value for IMBs and financial institutions across multiple product lines and digital channels," SimpleNexus CEO Cathleen Schreiner Gates said. "Together, our best-in-class, cloud native platforms will significantly strengthen how we serve our customers.”
Ico insights

INSIGHTS

SPONSORS' CONTENT
Natalieenglish headshot

MODERNIZE OUR DOWNTOWN LIBRARY AND MUSEUM

Natalie English - Wilmington Chamber of Commerce
Junegunter teachinghorse headshot 5721115557

What Is Next?

June Gunter - TeachingHorse
Jc300 dsc 2735

We Did Not Reach All Our Goals – Thank Goodness!

JC Lyle - Wilmington Area Rebuilding Ministry

Trending News

If City Seeks New Proposals, Company Has Castle Street Redevelopment Plans

Cece Nunn - Jan 14, 2022

MegaCorp Continues To Expand Office Footprint, Workforce

Johanna F. Still - Jan 14, 2022

In The Current Issue

What's In Store For Banks In 2022

The new year is likely to bring a continuation of some current banking trends as well as some new developments affecting the industry....


Top 10 Most-read Stories Of 2021

Check out the top 10 most-read Greater Wilmington Business Journal by online readers in 2021....


Apartment Sales Dominated 2021

Investors buying up Wilmington apartment communities drove the top real estate transactions of 2021 in New Hanover County....

Book On Business

The 2021 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

Trying to Grow a Business?
2020 Health Care Heroes
2020 WilmingtonBiz 100