Zopa eyes parts of DivideBuy as it looks to expand
Zopa is looking to buy parts of buy-now-pay-later provider DivideBuy.
The peer-to-peer lender-turned-digital bank, which earlier this month raised £75m from existing shareholders to fund its expansion, is reportedly in talks with the lender, which is backed by US investor Davidson Kempner Capital Management.
Sky News, which first reported the news of the potential deal, said that the status and terms of talks between them was unclear on Wednesday evening and it remained possible that a deal would not be struck.
DivideBuy secured a £300m borrowing facility from Davidson Kempner in September 2021 as part of a deal that also included a minority equity investment.
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“Acquisitions form part of the growth journey of most technology firms looking to scale, and feature in the regular menu of options that support accelerated growth,” a spokesperson at Zopa Bank told Sky News.
“While we don’t have something official to announce just yet, Zopa is well positioned to explore M&A as it has always focused on strong unit economics and monetisation.
“Additionally, with a banking licence and a multi-product eco-system it has diversity of revenue and funding, as well as strong products that have high growth rates.”
DivideBuy could not be reached for comment by Sky News.
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