After reporting earnings today, Zillow has also announced the acquisition of mortgage software company Mortech.
The financial terms of the acquisition is approximately $12 million in cash and 150,000 shares of restricted stock, around $17 million at today’s stock price of $34.37 at the close of market. The deal is expected to close in the fourth quarter of 2012.
Mortech offers a product and pricing engine to help lenders match the right mortgage products to the needs of a borrower at the best prices. The software also includes a lead-management platform to help lenders serve borrowers from multiple channels both online and offline and marketing tools to keep lenders’ brand and rate quotes in front of borrowers throughout the mortgage shopping process. The company’s core product Marksman, is used by banks.
Zillow says that it will offer Mortech’s technology mortgage professionals to help them manage their business, and convert more borrower contacts to funded loans.
Mortech is Zillow’s fifth acquisition and its first in the mortgage sector. The company just bought Buyfolio, an online and mobile collaborative shopping platform