TrigoldCrystal and Mortgage Brain’s sourcing systems will run alongside each other for at least the next five years following Mortgage Brain’s acquisition of the rival technology firm.
In December, Mortgage Brain agreed terms to buy TrigoldCrystal in a deal which could total £9.9m. A default cash offer of £6.8m was made, plus an alternative offer of cash, loan notes and shares totalling around £9.9m.
The Trigold board came to a unanimous agreement over the deal, which has now been put it to shareholders.
Speaking to Money Marketing, Mortgage Brain chief executive Mark Lofthouse, who will become chief executive of the combined business, says: “We will be doing a product review when the companies are together to see where we will take Trigold. We expect to keep both brands going for at least five years, probably longer.”
Lofthouse dismissed concerns that the deal could breach competition laws. The combined business will have revenues of over £11m.
He says: “We are notifying the Office of Fair Trading to get that clearance but our market is the provision of technology to financial advisers and the market is worth about £150m. We are number seven and eight in the market and, collectively, we will be number three but we will still be a quarter of the size of someone like 1st The Exchange.”
John Charcol senior technical manager Ray Boulger says: “This sort of consolidation is what one has to expect because it would not be economic for both of those companies to survive in the current market.”
London & Country head of communications David Hollingworth says: “Competition is never a bad thing but I think ultimately you would want a company that is going to deliver what you need. It would seem collectively they will be better able to do that.”