A Toronto-based company paid $40 million for Charleston tech firm Avista Solutions Inc., which specializes in mortgage lending software, the companies announced Thursday.

The acquisition builds the customer base of the buyer, Davis & Henderson Corp., and complements the software-as-a-service platform delivered through its Mortgagebot subsidiary, which originates mortgages for more than 1,100 U.S. banks and credit unions.

"With Avista, we've added an innovative, fast growing (loan origination system) business featuring proven capabilities that are highly synergistic to those we offer through Mortgagebot," said Davis & Henderson CEO Gerrard Schmid. "Together, we now support the entire mortgage origination process for U.S. lenders and provide customers with a comprehensive suite of products that enable efficient, effective growth from origination through to closing."

Avista was founded in 2001 and has more than 150 financial institution customers. Mortgage Technology magazine named Avista to its top 50 service provider list from 2007 through 2011.