Q2 Holdings Inc. agreed to acquire Cloud Lending Inc., a provider of end-to-end lending and leasing platform, for $105 million.
The deal includes potential additional consideration payable in the future, subject to achievement of certain financial metrics. It is expected to close in the fourth quarter.
Upon closing, Cloud Lending will become a wholly owned subsidiary of Q2, which provides digital banking solutions for community-focused financial institutions.
Q2 also provided guidance for the third quarter. It expects total revenue of $59.7 million to $60.3 million and adjusted EBITDA of $5.0 million to $5.4 million.
The company also increased its full-year 2018 guidance. It now expects total revenue of $238.0 million to $239.2 million, up from the previous guidance of $236.5 million to $238.5 million. Adjusted EBITDA is now expected to be between $22.1 million and $23.5 million, up from the earlier estimate of $21 million and $23 million.
Further, Q2 reported a second-quarter net loss of $8.6 million, or 20 cents per share, compared to a net loss of $7.9 million, or 19 cents per share, in the year-ago quarter. Non-GAAP net income for the quarter was $573,000, or 1 cent per share, compared to a non-GAAP net loss of $1.2 million, or 3 cents per share, a year ago.
The second-quarter S&P Global Market Intelligence consensus estimate for normalized EPS was 1 cent.