Voxtur to buy Blue Water Financial Technologies for $101 million

The real estate technology company Voxtur Analytics Corp. on Monday announced that it has agreed to buy servicing and loan trading platform Blue Water Financial Technologies Holding Company LLC for $101 million.

Voxtur, a Toronto-based company that has been building a network of North American real estate data and workflow platforms, will use a mix of cash and stock to buy Blue Water from investors led by Rice Park Capital Management‘s RPC Ventures Fund 1 LP. The fund is the Tampa, Fla.-based company’s largest equity holder.

“The integration of Blue Water into the Voxtur product suite strengthens our technology foothold and places us squarely in the capital markets arena,” Voxtur CEO Jim Albertelli said in a press release.

In addition to expanding Voxtur’s stake in the U.S. secondary mortgage market, the transaction aims to give Blue Water access to additional customers.

“Voxtur’s expansive client base provides enormous opportunities for us,” Blue Water Managing Partner Al Qureshi said in a press release.

The agreement struck to buy Blue Water Financial Technologies follows Voxtur’s earlier acquisition of Xome Valuations from Mr. Cooper. Voxtur also recently closed on the acquisition of Municipal Tax Equity Consultants and one of MTEC’s affiliates.

Other mortgage-related technologies Voxtur has invested in include title insurance alternatives, which Fannie Mae has recently expanded acceptance of, and default management automation.

In the Blue Water transaction, Voxtur plans to pay $30 million cash at closing, then issue 101 million in Voxtur common shares in equal increments over 16 quarters. Voxtur also plans to issue around 69 million shares in three equal installments, the first being 30 days after the closing. The next two will follow on anniversaries of the closing. These three installments satisfy certain long-term incentive plans that Blue Water previously adopted.

The price and closing of the deal will be subject to certain contingencies, including the clearance regulatory hurdles and approval of financing. Voxtur has a commitment from the Bank of Montreal to upsize a credit facility to $30 million to pay for the cash component of the price and cover certain other acquisition expenses.