Aldermore approached by FirstRand with acquisition offer

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fintech insurtech wealthtech regtech ai cybertech esg news

UK-based challenger bank Aldermore has reportedly been approached by South African bank FirstRand for an acquisition of around £1.1bn.

FirstRand has approached the bank to acquire its shares at a price 37 per cent higher than its average value, according to an article by BizNews. Following the offer, Aldermore is recommending a firm offer is made, it said.

Aldemore is a UK bank which provides finance, invoice finance, mortgages and deposit products for SMEs, homeowners, landlords and savers. Through the platform users have access to fixed rate accounts, which have interest rates starting from around 1.5 per cent.

Customers applying for mortgages have access to a range of options including a self-employed mortgage, family guarantee, first time buyer, low deposit, help-to-buy and mortgaging, among others.

FirstRand is looking to grow and diversify its revenue in the UK and believes Aldermore’s business model and market position makes it ideal, it said.

Aldemore raised a £40m funding round in 2014 from a selection of investors which included AnaCap Financial Partners and Toscafund, among others.

Since 2014, UK-based FinTech companies outside of London have been receiving a greater share of investments. Last year, the rest of the UK saw 19 per cent of the investments, which is compared to 2014’s 16 per cent. Of 2014’s fundraises, Peterborough-based Aldemore’s £40m investment, contributed to 6.3 per cent of its activity.

Copyright © 2017 FinTech Global

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