"The combined scale of these two businesses will allow us to offer more competitive and innovative products in a dynamic market, ultimately bringing more choice to consumers across the country."
- James Stevens, managing director of Bain Capital Tech Opportunities
Iress has sold its UK mortgage sales and originations (MSO) business to Bain Capital in a deal worth £85m.
Iress acquired the mortgages business over 10 years ago, and says the sale is part of its strategy to "divest non-core assets and strengthen its balance sheet".
Bain Capital intends to combine the MSO business with another UK mortgage software provider, finova, after securing a majority investment.
finova rebranded from DPR Group in 2021 and rebranded eKeeper and Burrow to 'finova Broker Platform'. It later rebranded MCI Mortgage Club to finova Payment and Mortgage Services.
The Iress transaction is expected to complete by the middle of the year, subject to approval. Iress says it will provide support services for a period of up to 12 months after the transaction to ensure a smooth transition.
Iress Group CEO, Marcus Price, said: “MSO is recognised as the most advanced end-to-end software of its kind and has changed mortgage lending in the UK with its scalable, customer-focused value proposition. Our decision last year to focus on our core strengths means now is the right time for the mortgages business to build on the strength of its product platform under new ownership.
“We saw strong interest in our mortgages business through the sale process and we’re delighted that we are announcing this transaction ahead of schedule. It is perhaps the most significant milestone achieved to date in Iress’ transformation, which sets out our plans to simplify our structure, create a more transparent and sustainable business and find new owners for businesses which are no longer strategically aligned to Iress’ objectives. We are delighted to have found an acquirer in Bain Capital with the expertise and capital to appropriately invest in the growth of MSO for the benefit of its customers and employees.
“The proceeds of the transaction will make a material difference to Iress’ net debt position, strengthening our balance sheet and providing greater ability to double-down and invest for growth in our core businesses of wealth, trading & market data and superannuation.”
Paraag Davé, executive chairman of finova, commented: “We are thrilled to blend finova’s SaaS expertise in complex solutions such as pricing, decisioning, specialist lending, savings, and loan servicing with MSO’s leadership in residential mortgage originations."
James Stevens, managing director of Bain Capital Tech Opportunities, added: “We are excited to back a compelling combination of robust platforms with complementary product suites and customer bases. The combined scale of these two businesses will allow us to offer more competitive and innovative products in a dynamic market, ultimately bringing more choice to consumers across the country.”
