Wolters Kluwer Inks Deal To Buy eOriginal For $280 Million

Financial services firm Wolters Kluwer Governance, Risk & Compliance (GRC) has signed an agreement to acquire digital lending software provider eOriginal for roughly $280 million (231 million euros) in cash.

“Borrower preferences, competition among lenders, and changing regulations are driving increased digitization of the lending workflow. eOriginal is well-positioned to take advantage of these systemic trends,” Steven Meirink, executive vice president and general manager, compliance solutions at Wolters Kluwer GRC, said in a Thursday (Dec. 10) press release.

He added that the deal with eOriginal “positions us as the leading provider of digital lending solutions” from loan approval and paperwork to closing.

The acquisition also advances GRC’s U.S. position in analytics and document generation for loans and mortgages.

eOriginal has over 650 customers in the country, according to the press release, including banks and lenders for mortgages, autos, equipment, and consumers. The platform gives lenders and their partners the ability to produce, handle and store digital assets from closing to the secondary lending market.

“Digital lending continues to grow across all industries,” said eOriginal CEO Brian Madocks. “eOriginal is a leader in digital loan solutions with a proven track record of growth and customer adoption.”

Madocks added that the tie-up between eOriginal and Wolters Kluwer gives customers “purpose-built digital solutions that are complete and compliant” and is “the right solution, in the right market, at the right time.”

GRC Compliance Solutions has partnered with eOriginal since 2016  and now aims to become “an industry leading end-to-end digital lending platform.”

High-risk marketplace loans have been considered dicey endeavors, however August research from dvo1 revealed that it’s more resilient than previously thought. The impairment rate — a measurement of borrowers falling behind — was 16.5 percent in April but dropped to 9.7 percent four months later.

The move to digital everything prompted by the coronavirus has pushed legacy financial institutions to accelerate technological adaptation. An August PYMNTS study of digital banking indicated that banks are closing physical locations, reducing hours, and asking customers to go digital.