by John Egan
Velocify Inc., a provider of sales and lead management software, entered 2018 with a new owner and a new chapter in its existence.
In October 2017, Ellie Mae Inc., which offers cloud-based software for the mortgage finance industry, bought Velocify for $130 million in cash. Now, El Segundo, California-based Velocify is a member of the Ellie Mae family, and Ellie Mae has wasted no time in integrating the two companies’ technology.
Jonathan Corr, president and CEO of Pleasanton, California-based Ellie Mae, says his company is incorporating Velocify’s lead management, engagement and distribution functionality into Ellie Mae’s Encompass, Encompass CRM and Encompass Consumer Connect offerings. Making that move simpler is the fact that many Encompass customers already were using Velocify’s technology.
“A robust solution will meet the needs of today’s lenders by delivering a complete digital lead generation and conversion solution for creating interest, turning that interest into an application, and then funding that loan quickly and at a low cost,” Corr says.
Velocify is the lead sponsor of LeadsCon Las Vegas 2018, set for March 5-7. Two company executives will be speaking at LeadsCon: Chris Backe, a CRM account executive, and Nick Hedges, former president and CEO of Velocify and now senior vice president of consumer strategy.
Corr says the Velocify acquisition enables Ellie Mae to optimize lead generation for mortgage lenders and to work toward full automation of the mortgage process. Ellie Mae processes nearly one-fourth of mortgage applications in the U.S.
“A digital transformation is occurring across the financial services industry, especially in the mortgage vertical in which Velocify has a leading position,” Hedges says. “Successful sales teams offer an end-to-end digital experience combined with as much human touch as the consumer desires throughout their buying process.”
Corr says he’s “very bullish” on the opportunities presented by the Ellie Mae-Velocify combo, and he’s impressed by “the energy and the enthusiasm” shown between the Ellie Mae and Velocify teams.
Hedges says the deal made sense because Ellie Mae has more resources at its disposal than Velocify did and because the companies’ platforms were closely aligned.
“Certainly in the mortgage vertical, we will become the first choice for any mortgage provider that wishes to provide a digital mortgage experience to their prospects and customers,” Hedges wrote in an August 2017 blog post. “However, we are also very excited that building these competencies of extending sales engagement more deeply into the buying process will deliver features and capabilities that will benefit our customers outside of mortgage as well.”
Hedges published that blog post not long after Velocify had been named to the Inc. 5000 list of America’s fastest-growing private companies for the third time. Other recent milestones for Velocity included the hiring of a new chief financial officer, general counsel and vice president of people.
“This recognition is a testament to the exceptional growth that Velocify has enjoyed for many years,” Hedges said when the Inc. 5000 honor was announced. “Our growth and scale exemplify a team that is obsessed with helping our clients accelerate their results with our industry-leading sales acceleration software.”
No doubt, Ellie Mae wanted to capitalize on that exceptional growth by acquiring Velocify. In 2017, Velocify appeared at No. 4,500 on the Inc. list, having posted three-year revenue growth of 55 percent. Velocify, founded in 2004, reported 2016 revenue of $45.2 million.
Kyle Messman, who was CFO when Velocify was acquired, noted in a 2017 news release that “maintaining a steep growth curve becomes more challenging and uncommon as a company becomes larger and more established, Velocify’s accelerated growth at this phase in its development is something to be celebrated because it is the direct result of a remarkable team and innovative technology coming together to help sales organizations maximize their potential.”
Click here to register for LeadsCon Las Vegas 2018.