D+H Acquires Avista Solutions, a Leading Loan Origination System Provider to U.S. Community Banks and Credit Unions
TORONTO, May 3, 2012 /CNW/ - Davis + Henderson Corporation ("D+H") (TSX:DH) today announced that it has acquired Avista Solutions, Inc. ("Avista") 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.
D+H is a leading solutions provider to the North American financial services marketplace, providing innovative technology-based programs, products and business services tailored to our customer's needs. We embrace thought leadership and are continuously expanding our capabilities and expertise to better anticipate the needs of our customers, build trust and deliver on our promises.
For over 130 years, we have demonstrated a proven track record of success and a deeply rooted tradition of developing and nurturing valued customer relationships. Our mission is to provide a unique and broad set of integrated solutions that help our customers deepen relationships with their own clients. For more information about D+H visit www.dhltd.com
D+H's Mortgagebot operation serves consumer-direct, branch, loan officer and call center mortgage channels through its award-winning PowerSite® family of integrated point-of-sale solutions. Mortgagebot blends deep mortgage experience with innovative "cloud computing" technology to create scalable and affordable websites for more than 1,100 banks and credit unions. Lenders large and small view PowerSite as a "must-have" solution because it helps them deliver a superior borrower experience, increase volume, and compete more effectively. PowerSite is also flexible and easy to use, with a rapid and proven implementation process. For more information about Mortgagebot visit www.mortgagebot.com
About Avista Solutions
Avista Solutions is a leader in sophisticated web-based loan origination systems for the American financial services industry. Founded in 2001, its suite of mortgage lending software provides complete, end-to-end solutions incorporating loan origination, product eligibility, pricing and imaging that can be rapidly implemented across all origination channels. Avista is considered a Top 50 Mortgage Technology Provider by Mortgage Technology magazine. For more information, visit www.AvistaSolutions.com.
Forward Looking Statement
This press release contains certain statements that constitute forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Statements concerning D+H's objectives, goals, strategies, intentions, plans, beliefs, expectations and estimates, and the business, operations, financial performance and condition of D+H are forward-looking statements. The words "believe", "expect", "anticipate", "estimate", "intend", "may", "will", "would" and similar expressions and the negative of such expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to important assumptions, including the following specific assumptions: the ability of D+H to meet its revenue, EBITDA and Adjusted net income targets; general industry and economic conditions; changes in D+H's relationship with its customers and suppliers; pricing pressures and other competitive factors; the anticipated effect of acquisitions on the financial performance of D+H; and the expected benefits arising as a result of the acquisitions. D+H has also made certain macroeconomic and general industry assumptions in the preparation of such forward-looking statements. While D+H considers these factors and assumptions to be reasonable based on information currently available, there can be no assurance that actual results will be consistent with these forward-looking statements.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Business, or developments in D+H's industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements.
Risks related to forward-looking statements include, among other things, challenges presented by declines in the use of personal and business cheques; D+H's dependence on a limited number of large financial institution customers and dependence on their acceptance of new programs; strategic initiatives being undertaken to meet the D+H's financial objective; stability and growth in the real estate, mortgage and lending markets; as well as general market conditions, including economic and interest rate dynamics. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The documents incorporated by reference herein also identify additional factors that could affect the operating results and performance of D+H. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions, and D+H does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change except as required by applicable securities laws.
All of the forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, D+H.For further information:
EVP & Chief Financial Officer