Lloyds private equity arm offloads Avelo

Australian technology provider Iress has acquired financial services IT solutions provider Avelo for an undisclosed sum, providing an exit for the firms group of private equity backers led by Lloyds’ buyout house Lloyds Development Capital.

LDC first took a controlling stake in Avelo, then named 1st–The Exchange, in 2009 and supported the business through the subsequent acquisitions of N4 solutions and, most recently, mortgage specialist TrigoldCrystal.

Iress said Avelo’s position as a “market leader” in the UK, its strong customer base and extensive product set makes it a “natural fit”. It added that the acquisition is a “cornerstone” strategy to “further develop” its foothold in the UK after entering the market in November 2011.

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Andrew Walsh, Iress chief executive, said: “Iress’ acquisition of Avelo is not simply a financial investment but a strategic commitment to long term sustainable growth in the UK and regionally. Iress and Avelo have an unrivalled product suite and scaled delivery capability.

“This unique combination makes us an obvious choice for manufacturers, distributors and lenders seeking a reliable and financially secure strategic technology partner.”

Simon Badley, chief executive of Avelo, said: “After a long and supportive relationship with LDC, becoming part of the Iress family is an extremely exciting prospect for Avelo, its people, and our clients.

“Our shared financial services pedigree and priority for customer service will mean confident delivery and smooth transition for our clients in the short term, and with Iress’ product capability and experience extending our services in time.”