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Legal & General-backed Salary Finance in advanced merger talks | Business News
The plans drawn up by FTSE 100 firm and venture capital housebuilder Blenheim Chalcot will see Salary Finance and Oakbrook merge into one lender with 200,000 active customers, according to Sky News.
By Mark Kleinman, City Editor @MarkKleinmanSky
Thursday, 11 July 2024 13:54, United Kingdom
A leading financial technology company, part-owned by Legal & General (L&G), is in talks over a merger that would create one of Britain’s largest non-bank consumer lenders.
Sky News has learned that Salary Finance, which advances employees’ salaries, and Oakbrook, a technology-enabled lending platform, are set to combine following talks between their largest shareholders.
Salary Finance is jointly owned by L&G and Blenheim Chalcot, a leading London-based digital enterprise builder whose portfolio includes fintechs Liberis and Modulr and which sold its remaining stake in Clearscore last year.
Sources said Blenheim Chalcot and L&G had been discussing the combination of Salary Finance and Oakbrook for months.
A merger would create a company with a £500 million loan book and 200,000 active customers.
News of the talks came weeks after Antonio Simões, L&G’s new chief executive, set up a non-core corporate investment unit, which is now earmarked for disposal.
Among them is Cala Group, the home builder.
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L&G’s stake is expected to be diluted by the deal, although it was unclear on Thursday whether it plans to divest its holding in the near term.
One source said the intent of the Salary Finance and Oakbrook merger was to bring more transparent and accessible credit options to consumers who have traditionally struggled to access affordable credit.
Salary Finance is said to have performed well this year.
The deal is expected to be finalized during the summer, according to insiders.
L&G and Blenheim Chalcot declined to comment.