SME finance provider 1pm has acquired commercial lender Intelligent Financing, which trades as iLoans, for up to £2m (€2.3m).
Intelligent Financing, which trades as ‘iLoans’ is a brokerage engaged in the packaging of secured bridging loans, second charge loans and commercial mortgages.
The deal consists of £1m in cash, £200,000 in 1pm shares, and £800,000 in a series of cash payments subject to iLoans achieving its profit forecast between 1 February 2017 and 31 May 2019.
Founders Alun Winter and Robert Coles will remain at iLoans, continuing to run the Cardiff-based business, after the acquisition.
1pm said the acquisition will allow it to fund some of the loans on its balance sheet, and allow it to move its product range into “adjacent, complementary sectors,” as part of its growth strategy.
This follows the announcement of a £7.5m secured loan note programme (SLNP) last week, which 1pm stated could be open to be used for acquisitions.
Ian Smith, chief executive officer, said: “Maintaining risk mitigation by being able to replicate our successful ‘funding and broking’ operating model is vitally important. The acquisition of iLoans helps to achieve these objectives and we anticipate further growth based on this sound platform.”