Bain Capital completes deals to acquire Finova and Iress’ UK mortgages business
Bain Capital Tech Opportunities (BCTO), the tech investment arm of Bain Capital, has completed the acquisitions of UK-based fintech Finova and Iress’ UK Mortgage Sales and Originations (MSO) business.
The deal will see Finova merge with Iress’ UK MSO business
Under BCTO’s ownership, the two entities will merge to become a single combined business and one of the “leading software vendors dedicated to the mortgage and savings sectors”, according to Finova.
BCTO acquired a majority shareholding in Finova from Norland Capital. The company offers a suite of solutions including mortgage origination products and savings and broker CRM software.
Meanwhile, Australia-based software provider Iress, which cut 10% of its staff last year amid a wider business restructure, sold its UK mortgages business to BCTO for a total gross cash consideration of £85 million in a deal first announced in March.
The MSO business, which Iress acquired over a decade ago, offers cloud-driven mortgage sales and origination software and consulting services to banks and building societies across the UK.
Speaking on the transaction, Marcus Price, Iress’ Group CEO, labels the move as the firm’s “fourth and largest divestment”.
BCTO’s newly combined business will serve more than 60 banks, specialist lenders, and building societies, including clients such as Suffolk Building Society and Offa, both of which partnered with Finova this year.
Additionally, the new entity will feature a 550-strong workforce, including over 120 staff members at an offshore centre located in India.
Paraag Davé, who joined Finova last year as executive chairman, is set to serve as CEO of the combined entity.
James Stevens, MD of BCTO, says that the “combined scale and capabilities” of its recent purchases will enable the combined firm to offer “more competitive and innovative products, addressing the evolving needs of the UK mortgage industry”.
