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Mortgage Brain set to buy TrigoldCrystal

Mortgage Brain has today confirmed that it is in discussions with the board of TrigoldCrystal and has agreed terms to buy the business for £6.8m.

In addition to the cash offer, loan notes and shares totalling circa £9.9m has been unanimously agreed by the board at TrigoldCrystal and will now be put to shareholders. It is expected that the transaction will be concluded within the next three months.

Mortgage Strategy revealed in October that Mortgage Brain was in final talks to buy its rival TrigoldCrystal.

Both companies have very similar turnover and are of comparable size and a notification will be made to the Office of Fair Trading for clearance.

Mortgage Brain says that the economies of scale facilitated by the transaction will ensure that products and services continue to be delivered at affordable prices.

It claims that the market for the provision of technology solutions to professional financial intermediaries is circa £145m per annum. The combined business will have revenues of over £11m and will become the third largest provider in this market.

Mortgage Brain’s chief executive officer Mark Lofthouse will remain as the chief executive of the combined business with Jon Whitmore, Peter Birch, Patrick Shuker, and initially Martin Colyer, joining the board.

Lofthouse says: “This announcement is great news for everyone in the industry. The combination of the businesses means that we will be able to accelerate new product development, continuously provide improved products and services and ensure that the advantages of technology based solutions are, cost effectively, made available to all.

 “It is very important that we continue to meet our customers’ requirements both in terms of future product investment and continued support of products that are relied upon every day. Additionally, the combined business will be better placed to meet future regulatory requirements.”

Peter Birch, chairman of TrigoldCrystal, adds: “This transaction will allow us to offer the industry the combination of our mortgage sourcing Prospector system with the mortgage trading platform, Mortgage Trading Exchange. 

“It will enable greater investment in products to build further upon the product launches we have made during 2010 and the larger scale business will be stronger and able to invest more substantially than either business could alone. This is an exciting development and we are looking forward to continuing to play a leading role in delivering and continuously improving services to our customers.”

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Comments
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  • sanjeeb 21st December 2010 at 1:42 pm

    For most homeowners, their house is their greatest asset. When an emergency comes up, therefore, it’s also where they turn; why take out a high interest loan when you can borrow against your equity? Of course, the danger in doing so is that you put your house on the line if you can’t make the payments, but for people with stable income who are experiencing the need for extra cash, this can be a good option.
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  • Adrian Garside 20th December 2010 at 10:28 am

    I’m with you.

    I’m with you – over the years I have used both and like features on both.

    However, I fear the lack of competition will enable them to increase costs ‘for research and development’ and I wonder if we’ll end up with worst of breeds rather than best.

    Oh well, got no choice, just got to see what happens. Figures crossed everything will be fantastci

  • Steven Balmer 20th December 2010 at 10:16 am

    I must admit the cynic in me becomes a little nervous. When there is a clear lack of competition and choice, this paves the way for future abuse if the merged companies decide it prudent to take advantage of position.

    On the other hand brokers and intermediaries could do with some badly needed support after the last few years and if this facilitates a better more affordable service to the unltimate end user – which is clients- perhaps this could encourage more lenders to offer inovative products to combat duel pricing and other issues.

    Next year will be interesting – just have to watch this space to see who will try to shaft who first!!