Fintel, the AIM-quoted provider of technology and data services to the UK financial services sector, has acquired the remaining equity of Mortgage Brain Holdings for £38.4 million, significantly expanding its software and data division.
Initial cash consideration of £28.9 million was paid on completion from existing financial resources, with £9.5 million deferred for 18 months.
Mortgage Brain is a leading UK mortgage technology provider whose contracted customers account for approximately 40% of the country's first charge residential and buy-to-let mortgage applications.
The business is expected to deliver around £12 million in revenue and £3.8 million in EBITDA by 2027, and the deal is anticipated to be earnings enhancing in that year.
The acquisition adds mortgage sourcing, criteria, affordability, customer relationship management and submission tools to Fintel's existing capabilities across wealth and insurance, positioning the group as a software provider spanning wealth, mortgage and multi-disciplinary advice firms.
Fintel had previously taken an initial 5.8% stake in Mortgage Brain in March 2024 for £1.5 million.
As part of the deal, Mortgage Brain chief executive Zahid Bilgrami will lead Fintel's Software and Data division.
On a proforma basis, the group's leverage ratio rises to 2.54 times immediately after the transaction, though Fintel expects to bring that below 2.5 times by year end.
Fintel chief executive Matt Timmins said Mortgage Brain's capabilities in artificial intelligence and advice quality review, combined with its integration with adviser platform Plannr, created additional opportunities across the group's software, services and enterprise markets.
