IBM (NYSE: IBM) announced a definitive agreement to acquire New Jersey-based Palisades Technology Partners, a privately-held provider of services and technology to the mortgage lending industry. Financial terms were not disclosed. The acquisition is subject to regulatory approvals and other customary closing conditions. The transaction is expected to close before the end of the year.
Palisades Technology Partners’ staff of business and technology experts provides strategic consulting, systems integration, and a comprehensive web-based multi-channel lending platform, which supports the entire lending lifecycle from point-of-sale, through post closing. The firm’s clients include five of the world’s top ten lenders. Palisades Technology Partners has been recognized as a Top 100 Technology Vendor by Mortgage Technology Magazine.
This acquisition builds upon IBM’s strategy to leverage business consulting, IT services and software to develop integrated, replicable solutions that help clients optimize and transform their businesses. An established provider of mortgage lending solutions, Palisades Technology Partners’ industry expertise, process know-how, and software add important components to IBM’s ability to provide transformational solutions for the finance and banking industries.
“The addition of Palisades Technology Partners will enable IBM to deliver enhanced solutions to our clients in the finance and banking sectors,” said Erich Clementi, general manager, IBM Managed Business Process Services. “The acquisition will accelerate IBM’s offerings and capabilities to deliver flexible, efficient and scaleable solutions, which reduce operational risk for clients that run complex lending processes.”
Based on a Service Oriented Architecture (SOA), Palisades Technology Partners’ Impact Lending Suite operates on an open architecture that offers lenders the flexibility to embed their own business policies and existing technology within a standard processing platform. SOA results in greater efficiencies, cost savings and productivity. The Impact Lending Suite is a proven solution that allows seamless integration with external specialist partners to deliver best-in-class processing capabilities, while reducing operational risk.
“As a part of IBM, we can expand our reach and capabilities to the marketplace with a much broader set of solutions,” said Carmine Cacciavillani, Palisades Technology Partners President and Founder, who will continue to manage the Palisades Technology Partners’ business within IBM. “Lenders searching for a partner that can deliver large scale operations improvements will need to look no further. We believe this union with IBM will allow us to better serve clients’ needs by giving us a deeper pool of resources for both implementation and innovation.”