Mortgage Advice Bureau has made an equity investment of 23 per cent in Sort Limited, owner of the online conveyancing portal “Sort Refer”.
The broker is paying £350,000 for its stake in the business, which is being funded from MAB’s existing cash resources.
This is the first investment made by the group since listing on AIM in November 2014, and is in line with its strategy of making targeted investments to enhance its distribution capabilities.
Sort’s business is primarily focused on conveyancing, using the established “Sort Refer” brand. Using Sort’s proprietary technology, conveyancing instructions from mortgage advisers and estate agents are referred to certain selected law firms and licensed conveyancing firms. Conveyancing services are closely linked with mortgage sales, as every mortgage requires conveyancing, including a remortgage.
Mortgage Advice Bureau chief executive Peter Brodnicki says: “The combination of legal and financial services, given they are so closely linked, represents an exciting opportunity for future growth. Sort is a very ambitious, fast growing business and is well positioned to support our strategic objectives in that area, including the integration of Sort’s software into MAB’s MIDAS platform.
“We are delighted to have made this investment in Sort which will build on MAB’s expertise and distribution capabilities, as well as enhance the consumer and adviser experience.”