Document management firm Xerox yesterday announced plans to buy Advectis, a provider of paperless document collaboration software to the mortgage industry, for $32m.
Advectis is privately-held and headquartered in Atlanta, Georgia. Its software will help Xerox to deliver software-services offerings that help mortgage brokers to automate document-intensive loan processing cycles.
Advectis’ BlitzDocs Collaboration Suite is Web-based and uses patented technology to mirror paper folders electronically which can be viewed and processed online. Customers also benefit from being part of a network of over 35,000 broker shops including the top seven mortgage insurance companies
Xerox, which is based in Rochester, New York, brings to the table considerable expertise in document outsourcing and services.
John Kelly, president of Xerox’s North American global services division, said the inclusion of Advectis’ technology will help to reduce the glut of paperwork that’s part and parcel of loan applications.
Anyone who has ever bought a home knows that the mortgage business is dependent on paper. Filling out an extensive number of forms is time and labor-intensive work.
Xerox’s expertise in automating document processes is an ideal fit with Advectis’ BlitzDocs paperless solution to help clients reduce costs and transform their business by offering a better experience for both end-users and operations.
The amount of paper associated with this industry leads to inefficient processes which, best case, are productivity drains and, worst case, can lead to a loss of control in the quality of the loans. TowerGroup estimates document management costs in loan origination totaled $3.2 billion last year.
Advectis was founded in 2000 and employs around 41 people. All are expected to join Xerox including its co-founder and CEO Greg Smith, who will remain head of the division.
Xerox’s all-cash purchase of Advectis also includes an additional performance-based supplement to the sale price. The acquisition is expected to close in the next 30 days, subject to customary closing conditions.
Through acquisition Xerox continues to broaden its document technology and services portfolio includes consulting and outsourcing services, records management, digital imaging, e-discovery for litigation support and managed services.
Last year it acquired Amici, a leading provider of electronic-discovery services for litigation and regulatory compliance, and XMPie, which provides variable information software for the graphic arts and marketing industries.