LONDON – British investment firm Caledonian Holdings Plc (AIM: CHP) said on Tuesday it had agreed to acquire fintech company Aspire Commerce Group Ltd for a nominal £1, a deal that grants it a regulated platform to build out its financial technology ambitions.
The proposed acquisition values Aspire at an enterprise value of £9.49 million, Caledonian said in a statement.
The deal is conditional on regulatory approval from the Financial Conduct Authority (FCA) and on Caledonian’s shareholders backing a change to its investment policy to allow majority ownership of companies.
To support Aspire’s short-term liquidity ahead of the deal’s completion, Caledonian has provided a loan of up to 600,000 pounds ($762,000).
“The interim funding ensures Aspire remains operationally stable ahead of completion and supports the platform we intend to develop,” said Jim McColl, Executive Director of Caledonian.
Aspire offers current accounts, business finance and foreign exchange services, targeting a gap in the UK trade finance market. For the year ended Dec. 31, 2024, it reported unaudited revenue of 36,057 pounds and a loss before tax of approximately 3.99 million pounds.
Caledonian said Aspire’s existing lenders have indicated support for a post-completion restructuring of its 9.49 million pounds in non-current liabilities. The planned overhaul would involve no capital repayments for an initial period, a cessation of interest accrual, and a long-dated repayment schedule.
The acquisition is central to Caledonian’s strategy of building an integrated, technology-enabled financial services group, the company said. It provides an immediate regulated infrastructure, which Caledonian said would shorten product development cycles.
“Partnering with Caledonian marks an important step for Aspire,” said Adam Rigler, CEO of Aspire. “The working-capital support gives us the stability to continue serving customers during the transition period.”
($1 = 0.7873 pounds)