Wolters Kluwer Governance, Risk & Compliance (GRC) has announced that it has signed an agreement with The Reynolds and Reynolds Company to acquire International Document Services, Inc. (IDS), a leading U.S. provider of compliance and document generation software solutions for the mortgage and real estate industry. The deal is for approximately $70 million in cash.

IDS will become an integral part of Wolters Kluwer’s Compliance Solutions business, a provider of compliance software for U.S. banks, lenders, credit unions, insurers, and securities firms. The acquisition “builds on GRC’s existing leadership in digital loan compliance, with end-to-end capabilities spanning from document generation to eClosing, loan analytics and lien solutions”, according to an official statement.

IDS serves more than 450 clients, including U.S. mortgage lenders, banks and law firms. The company’s services include initial disclosures, electronic signatures, closing documents, and document fulfillment. The IDS flagship document preparation solution, idsDoc, is a cloud-based platform that is recognized across the industry for its superior capabilities, customer service, and integrations with many of the leading loan origination systems and eClosing platforms.

IDS, founded in 1986 and based in Draper, Utah, employs approximately 75 professionals and is expected to generate revenues of approximately $15 million in 2022. “Revenues are based on transactional pricing linked to mortgage volumes. The acquisition is expected to deliver a return on invested capital (ROIC) above Wolters Kluwer’s after tax weighted average cost of capital (8%) within 3 to 5 years from completion. The acquisition is expected to have a positive but immaterial impact on Wolters Kluwer adjusted earnings in the first full year,” Wolters Kluwer added in its statement. The company’s London-based Chief Spokesperson, Paul Lyon, confirmed that the acquisition is subject to customary closing conditions and is expected before the end of the second quarter.

“IDS is well-positioned to take advantage of continuing digital adoption trends and has a strong track record of innovation in the mortgage industry,” said Steven Meirink, Executive Vice President and General Manager, Compliance Solutions, Wolters Kluwer GRC. “This strategic and exciting acquisition will further solidify Wolters Kluwer’s market leadership in expert solutions for loan compliance and, alongside our eOriginal product suite, positions us as the leading provider of digital lending solutions.”

In late 2020 Wolters Kluwer Compliance Solutions acquired eOriginal, a leading provider of cloud-based digital lending software, for approximately €231 million in cash. “The acquisition extends GRC Compliance Solutions’ leading position in U.S. mortgage and loan document generation and analytics into the fast-growing digital loan closing and storage adjacency,” the company said at the time and the acquisition of IDS is set to extend this competitive positioning.

“Wolters Kluwer has a long and distinguished history of excellence and innovation, and we are truly excited to join this leading business,” commented Mark Mackey, General Manager of IDS. “This is the perfect combination that will bring the next level of capabilities to our clients and the lending market.”

Wolters Kluwer Compliance Solutions reported a record year for industry awards in 2021, with more than 70 independently judged accolades celebrating excellence and innovation. These awards included plenty for the eOriginal product suite. Corporate Vision magazine, for example, named Wolters Kluwer eOriginal as “Best End-to-End Digital Lending Platform” in its 2021 Technology Innovator Awards for innovative use of technology. And Wealth & Finance International magazine named eOriginal “2021 End-to-End Digital Lending Platform of the Year” as part of its highly competitive FinTech Awards series.

Acquisition International also honored Wolters Kluwer Compliance Solutions with its 2021 “Financial Technology Acquisition of the Year” accolade, part of the magazine’s 8th Annual Business Excellence Awards, for its December 2020 acquisition of eOriginal.

Wolters Kluwer’s Compliance Solutions business line is globally run by Meirink who joined Wolters Kluwer in December 2015 leading a global team of more than 1,500 professionals across 15 global offices. He is responsible for the overall strategy and full operating P&L for the company’s Compliance Solutions business, serving the banking, insurance, and securities markets. Prior to joining Wolters Kluwer he was Senior Vice President and General Manager for Assurant Mortgage Solutions and has held several senior level positions within Equifax.