The deal values the firm at £235m, with Secure Trust receiving £107m in cash and £20m of NSF shares. Non Standard Finance will also repay around £108m of debts owed by Everyday Loans to Secure Trust.
NSF intends to raise around £160m from the Capital Raising in order to partfund the acquisition and related expenses. Admission and commencement of dealings in New Ordinary Shares is expected on 7 January 2016, with completion no later than 1 May 2016.
Everyday Loans offers non-bank, branch-based, unsecured consumer lending in the UK and has 36 branches and approximately 37,000 customers.
Its newer guaranteed loans capability provides a platform upon which further growth in a target sub-sector can be achieved. Non Standard Finance plans to run Everyday Loans as an independent division, and is targeting accelerated branch expansion and guaranteed loans operations, with a focus on increased lead generation from the broker network.
John van Kuffeler, NSF's Chairman, said:
"Our second acquisition demonstrates the Board's continued focus on creating a multi-faceted non-standard consumer finance business and I am delighted to announce further progress in the implementation of our strategy. With the completion of this acquisition we will have operations in all of our current target sub-sectors. Everyday Loans is a leading branch-based non-bank lender in the U.K. and its guaranteed loans operations, whilst small, provide a platform for growth in that market.
"Everyday Loans is a strong and differentiated business for which we have exciting expansion plans. By applying our expertise and management skills we intend to grow its branch network; widen its customer base; and accelerate growth in its guaranteed loans business.
"We remain committed to offering financial services to a disenfranchised part of the UK's population by treating customers fairly, delivering excellent service and lending responsibly."
