Zillow Inc. has reached a deal that will make it a player in the product and pricing engine business and expand its presence in the mortgage leads marketplace.
An announcement Monday from the Seattle-based company indicated that it will acquire Mortech Inc.
Mortech, a Mortgage Daily advertiser, is the developer of the Marksman pricing engine and the source of data for the U.S. Mortgage Market Index jointly published with Mortgage Daily. Its other offerings include a lead management platform and marketing tools.
Lincoln, Neb.-based Mortech was founded by Don Kracl in 1987 and employs 39 people.
Zillow, which noted that this is its fifth acquisition in two years, will pay $12 million in cash plus 150,000 shares of restricted stock for Mortech. Based on a closing price of more than $34, the stock portion of the deal is potentially worth more than $5 million.
The transaction is subject to customary approvals and is expected to close by the end of this year.
“This acquisition accelerates the development of Zillow Mortgage Marketplace, Zillow’s lending marketplace where borrowers can connect instantly with reputable lenders to get personalized loan options and real-time mortgage rates,” the statement said. “Now Zillow will deliver valuable marketing and productivity solutions to mortgage professionals to help them manage their business, and convert more borrower contacts to funded loans.”
Zillow reports that more than 1 million loan requests are being submitted through Zillow Mortgage Marketplace each month.
In a note to its clients, Mortech said it will be “business as usual.” The decision to sell was reportedly based on the resources, brand and team that Zillow brings to the table. The expanded resources will broaden the reach of Mortech’s products, while heavy investment in Mortech’s product and support teams will improve client offerings.
Mortech assured its customers that they will still be able to manage their leads from sources besides the Zillow Mortgage Marketplace.
