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.”