finova & MSO complete transaction with Bain Capital Tech Opportunities, uniting under common ownership

finova and MSO, two of the UK’s leading providers of mortgage and savings software, have completed their transaction with Bain Capital Tech Opportunities (BCTO), uniting under common ownership.

As part of this strategic move, finova has successfully completed the sale of a majority of its shareholding to BCTO from Norland Capital. During this period, finova has significantly expanded its suite of SaaS solutions, including its mortgage origination solutions, supporting over 50 residential, buy-to-let and specialist lenders, alongside a range of mortgage servicing, savings and broker CRM software.

In parallel, MSO – Iress’s UK mortgage solution platform – will be carved out from its Australian parent and unite with finova under a common group. MSO is one of the leading providers of mortgage sales and application processing, focused on the residential and buy-to-let mortgage segments. MSO’s highly regarded software is used by some of the largest lenders in the UK. During the last few years, MSO has completed its SaaS transition, with all its capabilities now delivered on the cloud.

The combined entity will be one of the leading software vendors dedicated to the mortgage and savings sectors, offering the richest and most modern cloud solutions, servicing over 60 banks, building societies and specialist lenders. The combined business will benefit from the skills and expertise of more than 550 staff, including an offshore center in India with over 120 employees.  

The business will be majority owned by Bain Capital Tech Opportunities, the specialist high growth tech investment fund of Bain Capital, with co-investment from Octagon Capital, the investment vehicle of Paraag Davé, and the management team.

Paraag Davé, CEO of the combined finova and MSO entity, commented:

“Since taking on an executive role over the last year at finova, we have transformed the business, and this gives huge confidence in what can be achieved. This transaction brings the backing of Bain Capital Tech Opportunities and unites us with MSO, which amplifies our potential, benefiting our employees, customers, and the market as a whole. Together, we are poised to advance the industry and deliver greater value.”

James Stevens, Managing Director of Bain Capital Tech Opportunities, commented:

"We're thrilled to finalise our investment in finova and MSO, two exceptional companies with a strong track record in the mortgage software sector. The combined scale and capabilities of these businesses will enable us to offer more competitive and innovative products, addressing the evolving needs of the UK mortgage industry.”