Fiserv has signed a definitive agreement to acquire Montreal-based Emergis' mortgage processing operations in the US for US$13.75m in cash.
Under the deal, e-business firm Emergis will receive US$12m in cash at closing and the balance of the sale price after a transition period of up to six months. The transaction is expected to close by the end of May.
Emergis' eLending US platform provides mortgage lenders with the tools that enable them to obtain a range of third-party services needed to process, close and fund mortgage loans via the Internet. The system also enables users to manage and store mortgage documents in a secure electronic environment.
The technology is supported by employees at Emergis' offices in McLean, Virginia. Following the acquisition, the unit will be combined with Fiserv's lending solutions division and all staff are expected to become employees of Fiserv.
James Puzniak, group president of Fiserv Lending Solutions, says the new technology will help to reduce the amount of paper associated with typical mortgage loan closings: "We can electronically service mortgage loans through all steps in the process, helping clients process loans even more efficiently and cost effectively."
Fiserv said in March it was acquiring Del Mar Database, a San Diego-based provider of automated back office systems to small and mid-sized mortgage lenders.