*Big LOS Acquisition News*
**By Tony Garritano**
***I don’t usually do this because I know that you don’t like getting multiple e-mails a day and I don’t want to spam you. However, this warrants an extra e-mail, believe me. I always expected more consolidation in the LOS space. It’s been too slow as far as I’m concerned. Sure, we saw DataTrac get acquired recently, but that’s it. Now the big news starts my friends. Today I learned that Avista Solutions has been acquired. Here’s the scoop:
****Davis + Henderson Corporation today announced that it has acquired Avista Solutions, Inc. of Charleston, South Carolina, a leading provider of Software as a Service (SaaS) mortgage loan origination software to community banks and credit unions in the United States.
****The acquisition adds to D+H’s customer base and expands the range of integrated technology solutions D+H offers to the North American financial services industry by complementing the SaaS consumer point of sale (POS) mortgage origination platform it delivers to more than 1,100 U.S. banks and credit unions through its Mortgagebot subsidiary. Like Mortgagebot, Avista’s loan origination system (LOS) technology is delivered via the Internet as a service and revenues are generated on a subscription-fee basis under long-term contracts.
****“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. Together, we now support the entire mortgage origination process for U.S. lenders and provide customers with a comprehensive suite of products that enable efficient, effective growth from origination through to closing. We are pleased that Avista’s team, including Mark Phlieger, its founder and CEO, are joining D+H to drive future growth.”
****Founded in 2001, Avista is a profitable and growing financial technology business with over 150 financial institution customers and a technology suite that includes a complete loan origination system with integrated product and pricing engine, document imaging, workflow capabilities, and a comprehensive network of seamlessly integrated third party mortgage service providers.
****“We believe that a combination of our innovative LOS technology and D+H’s industry leading mortgage point of sale solutions will allow us to jointly reach more customers, more rapidly, and with a more effective one-stop value proposition,” said Mark Phlieger, CEO of Avista. “Speaking on behalf of our team at Avista, I am excited by the prospects of taking our business to the next level.”
****The purchase price is $40 Million (USD) 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.
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at email@example.com.