AMSTERDAM: Wolters Kluwer Governance, Risk & Compliance (GRC) has signed an agreement with The Reynolds and Reynolds Company to acquire International Document Services Inc. (IDS), a leading U.S. provider of compliance and document generation software options for the mortgage and actual estate industry, for approximately $70 million in cash.
IDS will become an integral a half of GRC’s Compliance Solutions business, a number one supplier of compliance software program for U.S. banks, lenders, credit score unions, insurers, and securities firms.
The acquisition builds on GRC’s existing management in digital mortgage compliance, with end-to-end capabilities spanning from doc generation to eClosing, mortgage analytics and lien solutions.
IDS serves over 450 clients, together with U.S. mortgage lenders, banks and law firms. The company’s services include preliminary disclosures, digital signatures, closing documents, and doc fulfillment.
The IDS flagship doc preparation solution, idsDoc, is a cloud-based platform that’s acknowledged throughout the industry for its superior capabilities, buyer service, and integrations with many of the main mortgage origination systems and eClosing platforms.
IDS, based in 1986 and based in Draper, Utah, employs roughly seventy five professionals. The firm is anticipated to generate revenues of roughly $15 million in 2022. Revenues are based on transactional pricing linked to mortgage volumes. The acquisition is anticipated to ship a return on invested capital (ROIC) above Wolters Kluwer’s after tax weighted common cost of capital (8%) inside three to five years from completion.
The acquisition is anticipated to have a positive however immaterial impact on Wolters Kluwer adjusted earnings inside the primary full year. Completion of the transaction is topic to customary closing conditions and is anticipated inside the second quarter of 2022.
“IDS is well-positioned to take benefit of persevering with digital adoption trends and has a strong track record of innovation inside the mortgage industry,” said Steven Meirink, Executive Vice President and General Manager, Compliance Solutions, Wolters Kluwer GRC.
“This strategic and thrilling acquisition will additional solidify Wolters Kluwer’s market management in expert options for mortgage compliance and, alongside our eOriginal product suite, positions us because the main supplier of digital lending solutions.”
“Wolters Kluwer has a lengthy and distinguished historical past of excellence and innovation, and we’re truly excited to join this main business,” commented Mark Mackey, General Manager of IDS.
“This is the perfect mixture that will bring the subsequent level of capabilities to our clients and the lending market.”