LONDON, UK: Manx Financial Group PLC announced that Manx Ventures Limited has agreed to acquire a 50.1% interest in UK focused, point of sale lender Payment Assist Limited for a total initial consideration of £4 million payable in cash.
Manx Financial Group has been working with Payment Assist since 2015, the company’s wholly owned subsidiary Conister Bank Limited (the Isle of Man’s only independent bank) having provided the primary wholesale funding agreement to support Payment Assist’s growth during this period.
The acquisition is conditional on the satisfaction of certain conditions precedent including approval of the change of control by the Financial Conduct Authority (“FCA”).
In addition to the Acquisition, Manx Ventures has agreed an option to acquire the remaining 49.9% of Payment Assist for cash consideration of up to £5 million.
The Option can be exercised by Manx Ventures at any time for a period of two years after publication by Payment Assist of its audited accounts for the period to 31 December 2024. MFG will fund the initial £4 million consideration and deferred consideration of up to £5 million from its cash resources.
Commenting on the Acquisition, Douglas Grant, CEO of the Company commented: “The joint venture with Payment Assist continues our strategy of acquiring interests in high quality specialist lenders. We have witnessed first-hand the growth of Payment Assist over the last 7 years and the Board believes that there is potential for significant further growth.
The Acquisition, with no dilution to shareholders or external funding required, will position the Company to capitalise on what we expect to be a high margin and profitable business now and in the future. The option positions the Company to acquire the remaining 49.9% of Payment Assist at an attractive valuation if the business grows as the Company expects over the next three years. We have started the process of engaging with the FCA to obtain their approval for the proposed change of control and will make an announcement to update the market once this is received.”
Neil Jeffery, Chief Executive Officer of Payment Assist commented: “I am delighted to secure a long-term partnership with the Manx Financial Group, We have worked well with Conister Bank over the last 7 years and are confident the partnership with Manx Ventures, and continued support from Conister Bank as we grow the business, will position Payment Assist to continue to be a leading point of sale lender in the UK and support our growth into new products and sectors.”
Payment Assist was set up by Neil Jeffery and Colin Ellard in 2013 when they saw an opportunity in the automotive sector to try and improve garage customer retention rates by providing a financial solution to customers who could not immediately afford to pay for all the work that was required to be completed on their vehicle.