Sources: Morgan Stanley to oversee Ellie Mae sale
Ellie Mae operates as a mortgage software company. On Tuesday, two sources told Reuters that Ellie Mae had hired Morgan Stanley to try to sell the company. The sources asked not to be identified as the matter was held private in nature.
Morgan Stanley refused to give statements. Ellie Mae also declined to comment regarding said report.
Elli Mae has a market capitalization of USD768.6 million. The process of the sale of the mortgage software firm had been expected to start in the next few weeks. Private equity firms were expected to take a look at the company, one of the sources stated.
California based Ellie Mae's software is used in around 20% of all mortgages in the US, said the company.
Ellie Mae had been in a good position to sell after the jump of its stock price. From the USD5.50 per share at the start of 2012 to its current USD29 per share value, the company is indeed in a good position to sell. This was according to Needham & Company analyst Michael Huang.