Vishal Garg, Better.com
Digital mortgage lender Better announced on Monday that the company is making its first overseas expansion with the acquisition of Trussle, a UK-based digital mortgage and insurance broker backed by Goldman Sachs and Finch Capital, among others.
According to sources familiar with the case, the deal valued Trussle at about $ 9 million.
“Both Better and Trussle were founded on the understanding that consumers are increasingly choosing to use online services to shop and make big purchases for life,” said Trussle CEO Ian Larkin. Press release announcement of the deal.
Trussle was founded in 2015.
“We are thrilled to be part of Better, and we are confident that the future of Trussle looks brighter than ever as part of a large and growing international organization that shares our commitment to making home ownership simpler, more equitable and accessible to all,” Larkin said. … in the statement.
Amid the pandemic-fueled mortgage refinancing hype in the US, Better provided about $ 25 billion in loans last year.
Better was founded in 2016 by Vishal Garg, a former analyst from Morgan Stanleyafter a deal to buy a house for his family fell through. The full-cash buyer was able to beat his traditional mortgage lender in terms of timing, and it was then that Garg decided he needed to The best way… He used the first installment he set aside to start Better.
Goldman Sachs is among the Better investors.
“It better removes the high financing costs, massive transaction friction, tyranny and mind-boggling bureaucracy that comes with obtaining a mortgage and buying a UK home through a major bank,” Garg said in a deal announcement. “We found like-minded people on the Trussle team who developed a platform that we can work with to help every Briton have their own home.”
The national rate of home ownership in the UK has fallen from an all-time high of 70.9% to 63.9% in the past 15 years. according to Brookings Institution…
The Better platform completely translates the mortgage lending process online, giving customers the ability to upload and sign documents electronically, as well as shorten closure time from the industry average of 42 days to 21 days. Garg says the digital approach is also helping to reduce bias against minorities when applying for mortgages. The company previously cited research from the National Bureau of Economic Research showing that personal lenders reject minority applicants about 6% more often than comparable non-minority applicants, and also charge minority applicants more for their mortgages.
In addition, last year the company received not only $ 800 million in revenue, but also profits, although its growth was not without some disagreements…
In May, Better announced plans to go to market through a merger with Aurora Acquisition Corp.evaluating the company, takes 15th place last year CNBC Disruptor 50 list – $ 7.7 billion. The SPAC deal includes a $ 1.5 billion private equity investment (PIPE) led by SoftBank, which poured $ 500 million into the company just a month before the deal was announced. PIPEs are mechanisms by which companies can raise capital from a select group of investors, making the ultimate market debut possible.
The deal is expected to close in the fourth quarter.
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