Professional services and software provider Wolters Kluwer has agreed to purchase US-based loan documentation software publisher eOriginal for approximately €231m ($279m) in a deal allowing semiconductor technology producer Intel to exit.
The cash deal is expected to close before the end of this year. Power and automation technology provider General Electric’s GE Capital unit was also an investor but its parent company sold off the vast majority of its assets when it was shuttered in 2018.
Founded in 1996, eOriginal offers software that allows lenders such as banks and mortgage providers to create digital agreements to enforce the terms of their loans.
Wolters Kluwer expects the product to strengthen its digital loan closing and services offering, having collaborated with eOriginal since 2016. It estimates an 8% investment return within three-to-five years of the acquisition.
Paperless Transaction Management, eOriginal’s holding company, will become part of Wolters Kluwer’s governance, risk and compliance division. The company had raised a total of $49m in funding before the acquisition, $26.5m of which came in a 2016 round led by private equity firm LLR Partners.
Intel and existing investors GE Capital and Hat Creek Partners provided $6.5m for eOriginal in 1999. Regulatory filings show the company secured a further $3.1m of equity funding and $800,000 of debt financing from 2009 until 2015.