Ellie Mae [NYSE:ELLI], a developer of software for mortgage origination, has retained Morgan Stanley to explore a sale, said three sources familiar with the situation.
The sale consideration comes as interested financial sponsors have reached out to the Pleasanton, California-based fintech company in recent weeks, these sources said.
Once very fast growing, Ellie Mae has seen saturation in its core market and its cost structure is not the most efficient in the industry, the sources said. They said the USD 2.7bn market cap firm offers opportunities for a financial sponsor buyer to significantly improve its margins.
Ellie Mae did not return requests for comment. Morgan Stanley declined comment.