IRESS said the acquisition, which is subject to regulatory approval from the Financial Conduct Authority, marks its strategy of further developing and consolidating its foothold in the UK after entering the market in November 2011.
The acquisition will see IRESS take 100% ownership of Avelo from a consortia of private investors led by Lloyds Development Capital (LDC). LDC first took a controlling stake in Avelo – then named 1st-The Exchange – in 2009 and supported the business through the subsequent acquisitions of N4 solutions and most recently, mortgage specialist TrigoldCrystal.
Andrew Walsh, IRESS CEO said: “IRESS’ acquisition of Avelo is not simply a financial investment but a strategic commitment to long term sustainable growth in the UK and regionally.
“IRESS and Avelo have an unrivalled product suite and scaled delivery capability. This unique combination makes us an obvious choice for manufacturers, distributors and lenders seeking a reliable and financially secure strategic technology partner.”
Simon Badley, CEO of Avelo, added: “After a long and supportive relationship with LDC, becoming part of the IRESS family is an extremely exciting prospect for Avelo, its people, and our clients.
“Our shared financial services pedigree and priority for customer service will mean confident delivery and smooth transition for our clients in the short term, and with IRESS’ product capability and experience extending our services in time.”
Badley will report to Walsh as IRESS UK managing director, while current IRESS UK managing director Mark Thelwell will be responsible for the positioning of its XPLAN software, which provides systems for hundreds of Sesame network members, in the UK market.