Fintel announces key investments in Mortgage Brain and ifaDASH
() , a provider of fintech and support services to the UK financial sector, announced two strategic investments in Mortgage Brain and ifaDASH.
With Mortgage Brain, Fintel has signed a new distribution agreement and an investment of £1.5m for 5.8% stake in the the company. Mortgage Brain is a technology provider to the mortgage industry, serving 15,000 intermediaries with a suite of software sourcing solutions, submissions and CRM. Under the new agreement, Mortgage Brain's software will be made available to Fintel's wide network of advisors via its Intermediary Services division.
Fintel also announced the acquisition of ifaDASH, a reg-tech solution that assists intermediaries with efficiency and compliance. The acquisition was made through Fintel IQ, complementing its existing CRM software. Fintel has initially taken a 70% stake in ifaDASH for an upfront £0.5m in cash, with up to a £1.0m contingent consideration based on certain revenue and profitability targets being met in the next 12 months. Fintel also has the option to purchase the remaining 30% equity in ifaDASH over the next 2 years for an agreed multiple of EBITDA.
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Fintel has completed 2 significant investments, augmenting its scale, IP and product suite. Both transactions are in line with 's M&A and growth strategy, which is favoured by current market conditions in the sector. The transactions are fully financed from Fintel's existing cash resource.
The distribution agreement with Mortgage Brain should enable Fintel's customers to access a proven mortgage sourcing and submission software, which will now be integrated into Fintel's platform. Fintel's minority investment should in turn bolster Mortgage Brain's R&D and enhance the service further. Mortgage Brain is an established name in the mortgage industry with over 35 years of experience. For the year ended 31 March 2023, the company had revenues of £13.2m and reported an EBITDA loss of £1.96m.
The acquisition of a 70% stake in ifaDASH, with an option to acquire the other 30% over the next 2 years, should enhance Fintel's CRM capabilities. Investment in CRM is crucial for maintaining Fintel's wide network of intermediaries, improving efficiency and offloading regulatory burden. The acquisition follows FNTL's investment in CRM entrant Plannr.
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