Mortgage and savings software providers, finova and MSO, have completed a transaction with Bain Capital Tech Opportunities (BCTO), uniting under common ownership.

As part of the strategic move, finova has successfully sold a majority of its shareholding to BCTO from Norland Capital.

During this period, finova significantly expanded its suite of software as a solution (SaaS) tools, including its mortgage origination solutions.

MSO, which is the mortgage solution platform of Iress, will be carved out from its Australian parent and unite with finova under a common group. MSO provide mortgage sales and application processing, focused on the residential and buy-to-let mortgage segments.

The combined entity will be majority owned by BCTO, 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.

CEO of the combined finova and MSO entity, Paraag Davé, 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.”

Managing director of BCTO, James Stevens, added: “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.”

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