The nation’s largest network has entered a letter of intent to acquire the mortgage software company.
Dominion Lending Centres
is expected close the deal “on or about” December 15 for an aggregate purchase price of $5.5 million.
"We believe this transaction is a significant step forward for the DLC
group of companies,” Gary Mauris
, president of DLC
, said. It provides us an additional origination delivery platform and allows us to have material influence on user experience, data management, and will easily allow us to add additional revenue streams under a central platform."
Marlborough Stirling provides its tech services through three product line; Omiga, Optimus and the ubiquitous MorWEB.
“It is currently contemplated that the securities of MSC will be acquired by a new corporation ("Acquireco") which is 70% owned by DLC
and 30% owned by a third-party,” DLC
parent company Founder Advantage Capital said in a release. “Funding to complete the acquisition will be provided by DLC
and the third-party partner proportionate to their shareholdings in Acquireco.”
Marlborough owns a small share of the country’s mortgage processing pie, with its competitor D+H currently the technology of choice for most brokers and lenders.
Rumours of a potential purchase of Marlborough by DLC
were first reported in late November.