Iress to sell UK mortgages unit to Bain Capital
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The news: Financial services software group Iress will sell its UK mortgage sales and originations business to private equity firm Bain Capital as it continues to divest non-core assets.
The numbers: Iress has agreed to sell the business for £85 million ($165 million). Net proceeds after costs are expected to be $135 million to $141 million, with the deal likely to be completed by the middle of the year.
The context: Proceeds from the sale of the business, which Iress acquired more than a decade ago, will be used to retire debt and invest for growth in core businesses.
The market data provider has been pursuing a strategy of cutting down debt and focusing on core areas in wealth, superannuation and trading and market data. The company is targeting a leverage range of 1x to 1.5x by the end of 2024.
The latest deal follows the divestment of its managed funds administration and platform businesses. Late last month, Iress offloaded its OneVue platform to Praemium.
The source: ASX announcement
