MAB to acquire majority stake in Fluent Money Group

Mortgage Advice Bureau (MAB) has today (28th March) agreed to acquire 75% of Fluent Money Group for a total cash payment of approximately £73m.

The acquisition will be funded from renewed and increased debt facilities, existing cash resources and the proceeds of a proposed placing of new ordinary shares in the company to raise circa £40m.

MAB has also entered into a shareholders’ agreement with founders/management, who will be retaining 25% of the issued share capital of Fluent at completion.

The company has the option of acquiring the remaining stake after six years at a valuation subject to performance criteria relating to future growth and profitability to align with MAB's growth objectives.

The purchase is subject to the admission of the placing shares to trading on AIM and approval by the FCA in terms of the change of control, and is not expected to complete until the second half of 2022.

Peter Brodnicki, founder and CEO at MAB, said: "We are very excited to partner with a like-minded management team and high-growth intermediary that is a leader in centralised telephone mortgage advice. 

“This acquisition is a perfect example of our strategy to invest in complementary businesses and platforms to help accelerate growth by broadening our proposition. 

“MAB has targeted the fast-growing sector of national lead generation by using technology to link together its key appointed representatives and invested firms seamlessly. 

“Combined, we expect that Fluent and MAB will be able to grow this new market share opportunity quickly and effectively, complementing the local/regional strategy delivered by the rest of MAB's growing distribution."

Fluent has circa 420 employees, including 125 advisers across bridging finance, first- and second-charge mortgages, and later life lending.

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