ASX-listed Iress have right this moment introduced it has entered right into a binding settlement to divest its UK Mortgage Gross sales & Originations enterprise to Bain Capital Tech Alternatives for a complete money consideration of £85 million ($A164.3 million) earlier than prices. The sale marks a big development in Iress’ transformation technique to divest non-core property and strengthen its steadiness sheet.
Iress’ Mortgages enterprise gives mortgage gross sales and origination software program (MSO) and related consulting providers to banks and constructing societies within the UK. Iress acquired the Mortgages enterprise over 10 years in the past, throughout which era it has turn out to be a number one supplier of mortgage origination software program within the UK.
Iress Group CEO, Marcus Value, stated, “MSO is recognised as probably the most superior end-to-end software program of its type and has modified mortgage lending within the UK with its scalable, customer-focused worth proposition. Our resolution final yr to give attention to our core strengths means now could be the correct time for the Mortgages enterprise to construct on the power of its product platform underneath new possession.
“We noticed sturdy curiosity in our Mortgages enterprise by the sale course of and we’re delighted that we’re saying this transaction forward of schedule. It’s maybe probably the most important milestone achieved thus far in Iress’ transformation, which units out our plans to simplify our construction, create a extra clear and sustainable enterprise and discover new house owners for companies that are not strategically aligned to Iress’ aims. We’re delighted to have discovered an acquirer in Bain Capital with the experience and capital to appropriately put money into the expansion of MSO for the good thing about its prospects and workers.”
“The proceeds of the transaction will make a cloth distinction to Iress’ web debt place, strengthening our steadiness sheet and offering higher potential to double-down and make investments for progress in our core companies of Wealth, Buying and selling & Market Information and Superannuation.”
Bain Capital Tech Alternatives is a software-focused fund which companions and invests in expertise corporations at crucial progress and enlargement phases. It intends to mix the Mortgages enterprise with one other UK mortgage software program supplier, finova; establishing a brand new entity to deliver best-of-breed expertise to their respective prospects, driving scale and entry throughout all tiers of the mortgage market.
Web proceeds from the sale are anticipated to be roughly £70-73 million ($A135-141 million). Completion of the sale is topic to the novation of the present MSO consumer contracts to the brand new entity in addition to Competitors and Markets Authority approval. It’s anticipated the transaction shall be accomplished by the center of the yr, with the proceeds used to retire debt. Iress will present help providers for a interval of as much as 12 months after the transaction on a price restoration foundation to make sure a easy transition.
The transaction follows the divestments of the MFA and Platform companies, as a part of Iress’ technique of simplifying its operations and divesting non-core companies to retire debt.
