Fintel, the parent company of Simplybiz and Defaqto, has announced investments in both mortgage technology firm Mortgage Brain and fintech ifaDASH, as part of its growth plans.
Fintel has entered a distribution agreement with technology provider Mortgage Brain.
This agreement included an investment by Fintel of £1.5mn in return for 5.8 per cent of the current issued share capital of Mortgage Brain Holdings.
The Fintel investment will allow Mortgage Brain to continue investment in its technology platform and enhance its service to lenders and intermediaries.
Fintel joint CEO, Neil Stevens, said: “Our new distribution agreement with Mortgage Brain will enable our members to access their leading mortgage sourcing and submission software as part of our integrated platform.
“Our investment provides a significant cash injection to accelerate Mortgage Brain’s product transformation, enhancing its solutions and providing even greater efficiency to its customers, including Fintel’s extensive membership base.”
Under the new agreement, Mortgage Brain’s CRM, sourcing and submission software will be made available to Fintel’s network of advisers.
The arrangements also include a separate agreement between Fintel and Mortgage Brain’s shareholders that defines the basis for Fintel to potentially acquire their current issued shares in Mortgage Brain.
Additionally, Fintel announced the completion of its acquisition of ifaDASH, a reg-tech solution that assists intermediaries with running an efficient, compliant business.
Fintel has taken an initial 70 per cent stake in ifaDASH in exchange for an upfront cash consideration of £0.5mn, with up to £1mn of contingent cash consideration based on certain target being achieved in the next 12 months.
Fintel also has the option to purchase the remaining 30 per cent equity in the business over the next two years.
Stevens added: “We are also delighted to acquire ifaDASH today as we seek to continue to enhance our CRM capabilities.
“CRM is critical to our wide network of intermediaries as it improves their efficiency and reduces the regulatory burden, allowing them to focus on generating better outcomes for their clients.”
This acquisition was made through Fintel IQ, complementing its existing CRM software.
tom.dunstan@ft.com
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