Fresh off a strong earnings report, Austin-based Q2 Holdings, which sells online banking software, said it plans to acquire Cloud Lending, a California-based startup that sells a lending and leasing platform.
Financial terms of the deal were not disclosed.
Cloud Lending, founded in 2014 and based in San Mateo, says its platform helps lenders close more loans, generate more revenue and provide a better experience to borrowers throughout the loan process.
Matt Flake, CEO of Q2, said through the acquisition “we will be able to help our community and regional financial institutions more effectively manage and grow their lending portfolios -- their fundamental income generating activity.”
The deal is expected to close in the fourth quarter of 2018.
Founded in 2004, Q2 provides digital banking software and services to community-focused financial institutions. The company raised $101 million in an initial public offering in 2014 and has made at least two other acquisitions.
Two years ago, it purchased Social Money, a Des Moines, Iowa-based company that makes financial services software, for $10.6 million in cash.
This week, Q2 reported second quarter revenue of $58.6 million, topping Wall Street forecasts. Seven analysts surveyed by Zacks expected $58.3 million.
The company reported a loss of $8.6 million in its second quarter. On a per-share basis, Q2 said it had a loss of 20 cents. Earnings, adjusted for stock option expense and amortization costs, came to 1 cent per share, meeting Wall Street expectations.
The company expects full-year revenue in the range of $238 million to $239.2 million.
Shares of Q2 Holdings shares have increased 71 percent since the beginning of the year. In late-morning trading on Wednesday, Q2’s shares were at $60.05, down $2.90, or 4.6 percent.
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