Iress unloads UK mortgages business

Australian financial planning software and technology firm Iress has sold a core element of its UK business – its Mortgage Sales and Originations operation – to Bain Capital Tech Opportunities.

Iress announced today that it had entered into a binding agreement to divest the UK business for a total cash consideration of $164.3 million before cost.

Its announcement said the sale marks a significant advancement in Iress’ transformation strategy to divest non-core assets and strengthen its balance sheet.

The sale comes just weeks after Iress divested its OneVue platform business and in the wake of market speculation that the company was subject to takeover interest.

Iress’ Mortgages business provides mortgage sales and origination software (MSO) and associated consulting services to banks and building societies in the UK. Iress acquired the Mortgages business over 10 years ago, during which time it has become a leading provider of mortgage origination software in the UK.

Commenting on the transaction, Iress Group CEO, Marcus Price, said: “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”.

“ Our decision last year to focus on our core strengths means now is the right time for the Mortgages business to build on the strength of its product platform under new ownership,” he said.

“The proceeds of the transaction will make a material difference to Iress’ net debt position, strengthening our balance sheet and providing greater ability to double-down and invest for growth in our core businesses of Wealth, Trading & Market Data and Superannuation.”