Intercontinental Exchange Inc. (ICE) has revealed that ICE Mortgage Technology has acquired technology from DocMagic, Inc, which will utilize an eVault solution for the secure storage of digital mortgages and notes.
Shares of the leading operator of global exchanges, clearing houses, data, and listing services, have gained 20.2% over the past year.
Both ICE Mortgage Technology and DocMagic have years of experience in helping lenders implement digital mortgage processes. (See ICE stock analysis on TipRanks)
The addition of DocMagic technology will provide ICE with enhanced capabilities to enable paperless lending workflows, along with better supply chain connectivity.
Furthermore, the acquired technology from DocMagic will complement ICE’s mortgage closing platform, Encompass eClose, and will help customers save time and costs in the closing process, thereby creating improved experiences for borrowers.
Joe Tyrrell, President of ICE Mortgage Technology, commented, “By creating an end-to-end solution and further automating the mortgage closing process, we’re helping the industry transition to paperless closings and enabling more efficient processes for our customers.”
The financial terms of the deal have been kept under wraps. The deal is not expected to have any material impact on ICE’s earnings.
Morgan Stanley analyst Michael Cyprys recently initiated coverage on Intercontinental Exchange with a Hold rating and price target of $122 (8.3% upside potential).
Cyprys believes that ICE has a strong growth outlook with recurring revenue and secular tailwinds, but its upcoming refinancing cliff and crowded investor positioning could slow down share price growth.
Overall, the stock has a Moderate Buy consensus rating based on 5 Buys and 2 Holds. The ICE average analyst price target of $131 implies 16.3% upside potential from current levels.
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