In a stock and cash transaction valued at approximately $1.2 billion ($240 million in cash and approximately 13.2 million shares of nCino Common Stock), cloud banking provider nCino Inc. has entered into a definitive agreement to acquire SimpleNexus, a developer of mobile-first technology for mortgage lenders.
“When we first started nCino, our mission was clear: to transform the financial services industry through innovation, reputation and speed,” said Pierre Naudé, CEO of nCino. “Today, we take another major step forward in executing on that mission by welcoming the talented team at SimpleNexus and their best-in-class, cloud-based homeownership platform into the nCino family.”
SimpleNexus currently serves more than 300 independent mortgage banks (IMBs), 80-plus banks and credit unions, and more than 41,000 loan originators nationwide. During the first nine months of 2021, more than one in every seven mortgage originations in the U.S. leveraged SimpleNexus’ software.
Providing a natural expansion of nCino’s capabilities to the U.S. point-of-sale mortgage market, the acquisition of SimpleNexus initially expands nCino’s serviceable addressable market by more than $4 billion, and furthers its competitive position as the single digital banking platform of choice.
Like nCino, SimpleNexus operates a per-seat subscription-based revenue model, enabling the company to generate financial results that are more predictable, recurring and not based on mortgage transaction volumes.
“The SimpleNexus team members are amongst the most competent software experts we have ever encountered,” said Spencer, Managing Partner and Co-Founder of TVC Capital. “The company has a unique ability to anticipate customer need and then turn that need into compelling product offerings that absolutely delight their customers. With over 160% net revenue retention, SimpleNexus is in rarified air compared to nearly all public and private SaaS companies. We wish the SimpleNexus team best wishes as they merge with nCino and take the next step in their journey. The sky is truly the limit.”
nCino and SimpleNexus will work together to accelerate the adoption of the SimpleNexus homeownership platform by U.S. banks and credit unions, where nCino currently has more than 1,100 customers. The two companies will also work together to leverage SimpleNexus’ consumer front-end technology to accelerate the development of nCino’s mobile and point-of-sale offerings across additional lines of business.
“This is a truly exciting moment for SimpleNexus, and we are eager to be joining forces with the nCino team, with whom we share similar technology visions, strong cultural alignment and a commitment to taking care of our employees and customers,” said Cathleen Schreiner Gates, CEO at SimpleNexus. “Our industry-leading, mobile-first homeownership platform will complement nCino’s Bank Operating System to create even greater value for IMBs and financial institutions across multiple product lines and digital channels. Together, our best-in-class, cloud native platforms will significantly strengthen how we serve our customers.”
The transaction is expected to close by the end of nCino’s fourth fiscal quarter, ending January 31, 2022, and is subject to receipt of regulatory approvals and other customary closing conditions.