Bloomberg: Ellie Mae Explores Sale, Interviews Advisers

(RTTNews) - Ellie Mae Inc. (ELLI) is exploring a sale and has interviewed banks to manage the process, Bloomberg reported Thursday, citing three people with knowledge of the matter. The company is a provider of business automation software for the mortgage industry. Ellie Mae's shares gained more than 13 percent in the regular trading session.

According to the Bloomberg report, Ellie Mae may begin soliciting bids in the next two months. The Pleasanton, California-based company, founded in 1997, currently has a market capitalization of $819.02 million and a workforce of 360 people.

Ellie Mae is a provider of online network, software and services for the residential mortgage industry, including electronic mortgage capabilities, loan origination and mortgage management software, integrated closings with closing document preparation services; and electronic document management and mortgage websites.

The company's target market is mortgage originators, including mortgage bankers, mortgage brokers, community banks, credit unions and national and regional lenders within the U.S.

In early August, Ellie Mae reported a decline in profit for the second quarter to $3.7 million or $0.13 per share from $5.0 million or $0.21 per share in the year-ago period. However, revenue for the quarter surged 45 percent year over year to $34.3 million.

At that time, the company raised its outlook for fiscal 2013 adjusted earnings as well as revenue, despite expectations for a decline in mortgage origination volumes for the second half of the year.

ELLI closed Thursday's regular trading session at $30.98, up $3.61 or 13.19 percent on a volume of 2.95 million shares.