Mortgage technology solutions provider Twenty7Tec is looking to break into the financial advice market with plans to acquire a practice management system already operating in the space.

Twenty7Tec is in advanced talks with Bluecoat Software and hopes to get a deal over the line in the coming weeks, Mortgage Strategy sister magazine Money Marketing has learned.

Bluecoat is used by financial advisers and mortgage brokers to process and administer new business.

Meanwhile Twenty7Tec says it is committed to “reversing the trend” of the increasingly complex nature when it comes to obtaining a mortgage.

Bluecoat is listed as a “key client” on Twenty7Tec’s website, along with the likes of St James’s Place, Tenet, Sesame, 360 Dotnet, and Ipipeline.

Should the deal go ahead it will allow Twenty7Tec to make a play for the wealth management market and challenge existing software providers, including Intelliflo and Iress.

Twenty7Tec chief executive James Tucker tells Money Marketing: “I’m pleased to confirm that Twenty7Tec has been in talks with Bluecoat Software with regard to bringing the two businesses together.

“We believe that this combination will be a significant development for both the mortgage and wealth advice software markets. Talks are ongoing and we will make a further announcement shortly.”

Bluecoat lists companies such as Aegon, Legal & General, Fidelity Adviser Solutions, Novia, Nucleus and Transact among its “integration partners”.

The back-office software company, based in London, prides itself on its cloud hosted FinPlan tool, which it claims helps advice firms “increase efficiency, reduce costs, and improve the client experience”.

It also suggests the workflow-based solution supports advisers and mortgage brokers to “future-proof” their business.

Twenty7Tec launched its first mortgage sourcing system in September 2014. Its CloudTwenty7 technology can now be used by all participants in the mortgage market including advisers and end customers.

Money Marketing understands that for the past 18 months the mortgage software company has been keen to bring its business alongside similar businesses operating in the mortgage market.

While part of its aim has been to drive efficiency and value for its users, it has also wanted the opportunity to access other markets.

Bluecoat operates in the mortgage space and wealth market making it an attractive prospect for Twenty7Tec.

But it is thought conversations have also been had with other software providers about potential acquisitions.

If a deal between Twenty7Tec and Bluecoat is reached, the two businesses are likely to be combined under one management team with the platform developed for both the mortgage and wealth markets.

Money Marketing gathers Twenty7Tec may look to disrupt the adviser software market, similar to its entrance in the mortgage market, which had previously been dominated by big providers like Mortgage Brain.

Criticism dished out at back-office providers suggests innovation has been slow due to a lack of investment.

There have also been calls for technology systems to improve integration to provide a seamless experience for advisers and their clients.

A lack of joined up services could also be preventing the markets from offering other products and solutions such as protection, with systems seeming overly complicated.

But some suggest that even if innovation is happening, the adoption rate of technology by advisers can be slow, especially if they consider integration to be poor between the services they use and need.

Earlier this week, Twenty7Tec said it recorded the highest ever monthly total for mortgage searches in March, having surpassed the stamp duty-driven figure from last year.

In January, the firm revealed it had signed a deal to incorporate Hometrack’s automated valuation model into its offering.