Wolters Kluwer takes over eOriginal
Wolters Kluwer takes over eOriginal
December 10, 2020 – Wolters Kluwer Governance, Risk & Compliance (GRC) has signed an agreement to acquire eOriginal, a leading provider of cloud-based digital credit software, for approx. €231 million in cash.
The acquisition extends GRC Compliance Solutions’ leadership position in the generation and analysis of US mortgage and loan documents to the rapidly growing digital loan completion and storage environment.
eOriginal is a trusted leader in digital credit technology, serving more than 650 customers in the United States including banks, mortgage lenders, consumer lenders, and auto and equipment financiers. The eOriginal platform enables lenders and their partners to create, store and manage digital assets from the local to the secondary credit market. GRC’s Compliance Solutions business has had a strategic partnership with eOriginal since 2016, which includes the integration of eOriginal’s electronic safe and locking software Experience. The offerings of eOriginal and GRC Compliance Solutions complement each other and together form an industry-leading end-to-end platform for digital lending.
eOriginal expects sales of approx. 31 million euros (unaudited) in 2020, of which almost 95% will be recurring and cloud-based. Organic sales have grown in double digits over the past three years. The acquisition is expected to generate a return on invested capital (ROIC) above Wolters Kluwer’s weighted average cost of capital (WACC) after taxes of 8% within 3 to 5 years of closing in the first full year. The closing of the transaction is subject to customary closing conditions and is expected before the end of 2020. The transaction will be carried out through the purchase of eOriginal’s parent company, Paperless Transaction Management, Inc.
Founded in 1996, eOriginal is based in Baltimore, Maryland and today employs around 100 people. Solutions include eAsset®, SmartSign® and ClosingCenter ™.
“Borrower preferences, competition among lenders and changing regulations are driving the increasing digitization of the lending workflow. eOriginal is well positioned to benefit from these systemic trends, ”said Steven Meirink, Executive Vice President and General Manager, Compliance Solutions, Wolters Kluwer GRC. “The acquisition positions us as a leading provider of digital credit solutions that cover all workflows from credit approval and document creation to closing with compliance security.”
“EOriginal is a leader in digital credit solutions with a proven track record of growth and customer adoption,” added Brian Madocks, CEO of eOriginal. “Digital lending continues to grow in all industries. Customers want and need specially developed digital solutions that are complete and compliant. The combination of eOriginal and Wolters Kluwer offers exactly that – the right solution in the right market at the right time. “
About Wolters Kluwer
Wolters Kluwer (WKL) is a leading global provider of specialist information, software solutions and services for the healthcare sector; Tax and accounting; Governance, risk and compliance; as well as legal and regulatory areas. We help our customers make critical decisions on a daily basis by offering expert solutions that combine in-depth domain knowledge with specialized technologies and services.
Wolters Kluwer achieved annual sales of 4.6 billion euros in 2019. The group serves customers in over 180 countries, has branches in over 40 countries and employs around 19,000 people worldwide. The company is headquartered in Alphen aan den Rijn, the Netherlands.
Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt (ADR) program. The ADRs are traded on the over-the-counter market in the United States (WTKWY).
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