Austin-based technology company Crossroads Systems says it has acquired Capital Plus Financial, a provider of affordable housing and mortgage financing to underserved communities.
As part of the deal, Erik Donnelly, CEO of Capital Plus Financial, will assume the CEO role of Crossroads.
Donnelly will fill the role formerly held by Crossroads principal executive officer Richard Coleman.
“We are thrilled to announce the acquisition of CPF and I am excited to turn over the reins to our new CEO,” Coleman said in a written statement. “Eric Donnelly and his team have built a profitable and growing social enterprise providing affordable housing and mortgage financing to low income and well deserving borrowers.”
Coleman said the acquisition delivers on Crossroads’ “commitment to create long-term shareholder value while delivering impact to underserved communities.”
Crossroads said in a news release that as part of the transaction, Capital Plus Financial stockholders received $30.8 million in cash and an aggregate of 2.9 million newly issued shares of Crossroads stock.
Crossroads Systems was founded in 1996 as a developer of software to connect and protect data enterprise storage and cloud computing. Today is an intellectual property licensing company.
Capital Plus Financial, based in Bedford, is a certified Community Development Financial Institution and Certified B Corp that focuses on Hispanic home ownership in Texas.
According to Capital Plus Financial, more than 85 percent of its mortgages have been made to low to moderate income and first-time home buyers.
The company said it plans to grow its loan portfolio over the next decade as traditional portfolio lending institutions continue to exit the single family residential lending market.
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