Metavante, the highly acquisitive financial technology subsidiary of Marshall & Ilsley Corporation, is buying GHR Systems, a Pennsylvania-based provider of loan origination software, for $65 million.
Established in 1985, GHR Systems is a provider of loan origination software for the residential mortgage and consumer finance industries. Metavante previously acquired a five per cent interest in the firm In November 2000.
Metavante is buying the company from GHR's three founders and other investors. The acquisition, of which approximately $55 million will be funded with M&I common stock, is expected to close in the third quarter.
Metavante says the acquisition will add consumer finance and mortgage loan origination technology to its financial services lines.
The GHR management team, led by Cyrus Brinn and Allan Redstone, will continue operating the business and become part of the Metavante Financial Solutions Group headed by Paul Danola, president and chief operating officer of the division.
Commenting on the deal, Danola says: "By providing automation technology and services for residential mortgages that includes end-to-end origination from point of sale through underwriting, processing, closing, and documentation, we will now be able to deliver a premier, mortgage loan origination solution to our clients."
GHR Systems is Metavante's fourth acquisition this year. The company completed a deal for AML vendor Prime Associates in February. In May, Metavante said it was buying health account debit card vendor Med-i-Bank, while last Friday the vendor said it was buying Treev, a provider of document management software and consulting services to financial firms, for 19.5m.