"The proceeds of the transaction will strengthen our balance sheet and provide greater ability to double-down and invest for growth in our core businesses of wealth, trading & market data, and superannuation."
- Marcus Price, CEO of Iress
Iress acquired the mortgages business over ten years ago but has since decided to “focus on our core strengths, which means now is the right time for the mortgages business to build on the strength of its product platform under new ownership.”
Bain Capital intends to combine Iress’ mortgage sales and originations (MSO) business with mortgage software competitor, finova, after securing a majority investment. This transaction is expected to be completed later this year, subject to approval. Support services will be provided by Iress for up to twelve months after the transaction to ensure a smooth transition.
“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,” explained Marcus Price, CEO of Iress. He said the technology provider saw “strong interest in our mortgages business through the sale process and we’re delighted that we’re announcing this transaction ahead of schedule.”
“It’s 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,” he continued.
James Stevens, Managing Director of Technology Opportunities at Bain Capital, said “we’re excited to back a compelling combination of robust platforms with complementary product suites and customer bases.” He believes the combined scale of these businesses will allow Bain Capital to offer more competitive and innovative products in a dynamic market, “ultimately bringing more choice to consumers across the country.”
“We’re thrilled to blend finova’s expertise in complex solutions such as pricing, decisioning, specialist lending, savings, and loan servicing with MSO’s leadership in residential mortgage originations,” concluded Paraag Davé, Executive Chairman of finova.
