An aggregator has acquired a 70 per cent stake in a mortgage broker software business, with the latter to continue operating as a separate company.
Australian Finance Group (AFG) has announced the acquisition of a 70 per cent stake in mortgage broker software business BrokerEngine.
BrokerEngine will retain its brand and product offering to the broker market, while co-founders Craig Vaughan and Will Swayne will continue in their current roles at BrokerEngine.
It will continue to operate as a separate business in-market, with AFG’s balance sheet strength to support its growth.
Brokers outside the AFG network will continue to receive full support and maintain relationships directly with the BrokerEngine team, according to AFG.
As part of the transaction, AFG has the option to increase its stake to 100 per cent over the next two years, subject to performance hurdles.
Under the acquisition, BrokerEngine will integrate the AFG technology platform as an advanced workflow and pipeline management tool.
According to AFG chief executive David Bailey, this investment will complement AFG’s technology, accelerate development, and achieve scale.
“When we became aware of the opportunity to invest, we quickly realised it was one we wanted to pursue,” he said.
“AFG brokers currently using the platform value the technology. It is well advanced and by far the best workflow tool in the Australian broker market.
“We are committed to taking a leading role in supporting brokers with the most sophisticated technology platforms to help them be more efficient, grow their businesses and offer their customers outstanding experiences.”
Mr Bailey noted that BrokerEngine delivers automated workflow and the ability to design bespoke customer journeys tailored at a business level.
“With 67 per cent of Australian mortgages now being originated by mortgage brokers, BrokerEngine provides solutions which save brokers time and helps them manage their business,” he said.
“At the same time, the technology provides an efficient and compelling customer experience.”
Mr Bailey stressed that it would be business as usual for the BrokerEngine team, adding: “Will and Craig have an exciting list of enhancements planned for the Broker Engine product and will continue in their roles.
“AFG will provide the BrokerEngine team with the added security of having a larger business supporting their growth. This means Will and Craig can focus on innovation and making the BrokerEngine platform even better for all brokers using the technology.”
Mr Bailey concluded that Mr Swayne and Mr Vaughan would remain focused on assisting brokers with reducing the time it takes to serve clients and provide service with scale.
“We are looking forward to working with the BrokerEngine team to deliver value to both businesses and to drive high-level performance for brokers and their customers at a time when Australian mortgage brokers have never been busier,” he said.
Mr Swayne and Mr Vaughan commented on the acquisition in a joint statement: “We are delighted to enter this new phase of growth with AFG. They have a vested interest in broker success and will provide crucial support as we double down on innovation and value for brokers and the homeowners we serve.”
AFG’s latest acquisition has followed the acquisition of a 75 per cent stake in asset finance aggregator National Finance Alliance Pty Ltd, trading as Fintelligence.
[Related: AFG acquires aggregator]