Ellie Mae has commenced a follow-on offering of 2.75 million shares of its common stock.
In addition, Ellie Mae plans to grant the underwriters of the transaction a 30-day option to buy 412,500 shares at the public offering price.
The Pleasanton, Calif.-based company expects to bring in net proceeds from the offering of $241.3 million, or $277.6 million if the underwriters use their option, based on the July 29th closing price of $92.11 per share used in the company's prospectus.
Proceeds will be used for general corporate purposes including working capital, sales and marketing and capital expenditures.
The company also noted that it may use a portion of the proceeds "for the acquisition of, or investment in, technologies, solutions or businesses" that complement Ellie Mae's offerings. Ellie Mae also reported that it has not entered into any "understandings, commitments or agreements" regarding any acquisitions currently. In the past two years, Ellie Mae acquired customer relationship management firm Mortgage Returns and loan guideline data provider AllRegs.
In the
J.P. Morgan, Morgan Stanley, and Barclays are the offering's lead joint book-runners, while JMP Securities, Needham & Company, Oppenheimer & Co., and Roth Capital Partners are its co-managers.
