Bain Capital Tech Opportunities has agreed to buy the UK mortgage software and originations (MSO) business of Iress and acquire a majority stake in home loan platform finova for an undisclosed sum.
Iress mortgage software connects lenders and brokers to allow sourcing and sales.
Cheltenham-based finova’s platform manages mortgage pricing, underwriting, application processing, and loan servicing. The business is aimed at brokers, specialist and equity release lenders as well as savings institutions.
US software investor Bain says: “The mortgage market is becoming faster paced and more complex, increasing the need for more sophisticated software tools such as personalised pricing.
“These combined businesses will be well positioned to meet the demand for more advanced software. Customers will also benefit from a broader software suite that supports a wider range of financial products.”
James Stevens, a managing director of Bain Capital Tech Opportunities in London adds: “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.”
MSO chief executive Andrew Simon points out: “Bain Capital is fully committed to investing in MSO to ensure our customers continue to benefit from software that is amongst the best in the market.
“Through the combined business, we’re looking forward to bringing a broader set of innovative products to market.”
Finova executive chairman Paraag Davé says: “Bain Capital’s investment in each business will strengthen and invest in the capabilities of both platforms and help deliver increased value to our customers.
Davé adds that the move will “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.”
