Mortgage Connect, LP Completes its Acquisition of ADFITECH, Inc., and is Positioned to Deliver Comprehensive "Life-of-Loan" Services and Solutions

Rhea-AI Summary

Mortgage Connect has successfully acquired ADFITECH in an all-cash transaction valued at approximately $29 million. ADFITECH's stockholders will receive $3.717451 per share in cash. This acquisition positions Mortgage Connect to enhance its mortgage service offerings, leveraging ADFITECH's expertise in outsourced mortgage quality control and fulfillment. The deal underscores Mortgage Connect's commitment to high-quality customer service and aims to capitalize on synergies within the mortgage services sector.

Positive

• Acquisition valued at approximately $29 million, enhancing service offerings.
• Stockholders receiving $3.717451 per share in cash.
• Strengthens Mortgage Connect's position in outsourced mortgage quality control.

Negative

• None.

EDMOND, Okla., April 8, 2022 /PRNewswire/ -- Mortgage Connect, LP ("Mortgage Connect"), a national mortgage service provider, announced today that it has successfully completed the previously announced acquisition of ADFITECH, Inc. (OTC: ADFT) ("ADFITECH") in an all-cash merger transaction valued at approximately $29 million. As a result of the transaction, holders of ADFITECH's common stock are entitled to receive $3.717451 per share in cash with the aggregate amount rounded to the nearest whole cent. ADFITECH is a leading provider of mortgage services in North America.

Tom Apel, Chief Executive Officer of ADFITECH, said "We are pleased to join forces with Mortgage Connect, an organization with a solid reputation for customer service within the mortgage services industry. We appreciate the support of our valued customers and the talented ADFITECH employees and management as we continue to work together to provide the highest quality outsourced mortgage quality control, due diligence and mortgage fulfillment services in the future."

The Coury Firm served as the exclusive financial advisor to Mortgage Connect and SmithAmundsen LLC served as legal advisor to Mortgage Connect.  Cowen served as financial advisor to ADFITECH and McAfee & Taft served as legal advisor to ADFITECH. 

About Mortgage Connect LP

Mortgage Connect is a Pittsburgh, PA headquartered national mortgage service provider, serving the Origination, Default, Valuation, Critical Communications, and Capital Markets sectors. With additional offices in New York, Texas, California, Colorado, Nevada and Alabama, the company offers customizable solutions to the nation's lenders and servicers, including 9 of the top 10 and 17 of the top 20. Through its serve-first culture, Mortgage Connect and its subsidiaries are committed to an unwavering level of communication, education and customer service on each transaction and strive to leave an overwhelmingly positive and lasting impression with the consumer, loan officer and the client. For more information, visit www.mortgageconnectlp.com.

About ADFITECH, Inc.

Founded in 1982, ADFITECH has earned an impeccable reputation in the mortgage industry as the premier provider of outsourced mortgage quality control, due diligence and mortgage fulfillment services. From its 15-acre corporate campus in Edmond, Oklahoma, ADFITECH's army of dedicated employees review and validate countless pieces of critical information vital to the wellbeing of an ever increasingly regulated mortgage industry. For more information visit www.adfitech.com.

Cautionary Language Regarding Forward-Looking Statements

This release contains certain forward-looking statements related to the transaction between Mortgage Connect and ADFITECH. Forward-looking statements are typically identified by words or phrases such as "expects," "anticipates," "believes," "estimates," "intends," "plans to," "ought," "could," "will," "should," "likely," "appears," "projects," "seeks," "forecasts," "outlook," "may" and similar expressions. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict. Actual outcomes and results may differ materially from those expressed or projected in such forward-looking statements.

For Further Information Contact:

Contact:
Ellie Kadz
310.502.0012

View original content:https://www.prnewswire.com/news-releases/mortgage-connect-lp-completes-its-acquisition-of-adfitech-inc-and-is-positioned-to-deliver-comprehensive-life-of-loan-services-and-solutions-301521051.html

SOURCE ADFITECH, Inc.

FAQ

What is the value of the ADFITECH acquisition by Mortgage Connect?

The acquisition is valued at approximately $29 million.

What will ADFITECH shareholders receive from the acquisition?

ADFITECH shareholders will receive $3.717451 per share in cash.

How does this acquisition benefit Mortgage Connect?

The acquisition allows Mortgage Connect to enhance its mortgage service offerings and leverage ADFITECH's expertise.

When was the acquisition of ADFITECH completed?

The acquisition was completed on April 8, 2022.

What services does ADFITECH provide?

ADFITECH is a leading provider of outsourced mortgage quality control, due diligence, and mortgage fulfillment services.