Fintel (FNTL) has acquired the remaining equity in Mortgage Brain Holdings for £38.4 million, materially expanding its software, data and AI capabilities across the UK mortgage and financial advice markets.
Fintel previously acquired a 5.8% stake in Mortgage Brain for £1.5 million in March 2024. The remaining equity has now been acquired for £38.4 million, comprising an initial cash payment of £28.9 million and £9.5 million deferred for 18 months.
Mortgage Brain provides software covering mortgage sourcing, criteria, affordability, customer relationship management and submissions, while its AE3 Media business operates mortgage and protection media, events and insight platforms. Its contracted customers are responsible for ~40% of UK first charge residential and buy to let applications.
The acquisition strengthens Fintel's Software & Data division and extends its offering across wealth, mortgage and multi-disciplinary advice firms. Mortgage Brain is also integrated with Plannr, the adviser operating platform in which Fintel holds a 49% strategic stake, supporting connected mortgage and wealth workflows.
Mortgage Brain is expected to generate ~£12 million of revenue in 2027, including £10 million from Software & Data products and £2 million from mortgage related events, with EBITDA expected to reach ~£3.8 million. The acquisition is expected to be earnings enhancing in FY27 after incremental interest and amortisation costs.
The transaction takes Fintel's pro forma leverage ratio to 2.54x immediately following completion, with the year end leverage position expected to fall below 2.5x.
Mortgage Brain CEO Zahid Bilgrami will lead Fintel's Software & Data division following the acquisition.
Fintel’s CEO Matt Timmins said: “Mortgage Brain is a high-quality software business with strong recurring revenues, attractive growth characteristics and a leading position in the UK intermediary market.
The acquisition strengthens our Software & Data division, expands our capabilities across wealth, mortgage and multi-disciplinary advice firms, and increases the scale of our proprietary data assets.
Mortgage Brain's capabilities in AI and advice quality review, together with its integration with Plannr, create additional opportunities across our software, services and enterprise markets."
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The Mortgage Brain acquisition significantly broadens Fintel's mortgage technology capabilities while adding recurring software revenues and proprietary data. Integration with Plannr could also strengthen its position with advice firms looking for more connected wealth and mortgage technology, while the deal is expected to enhance earnings from FY27.