GLI to acquire specialist lender

GLI to acquire specialist lender




Alternative finance provider GLI Finance has revealed that it's in talks over the acquisition of specialist SME lender Sancus Gibraltar.

The firm believes that this transaction, alongside the acquisition of BMS Group, will simplify GLI’s group structure and better position it for the expansion of its niche lending businesses and platform portfolio.

GLI will be issuing a bond of up to £4m via alternative finance platform, UK Bond Network, which will be used as paper consideration for its acquisition of Sancus.

Sancus Gibraltar and BMS sub-groups will be consolidated into one unified lending business called Sancus BMS.

Andy Whelan, Chief Executive of GLI Finance said: “The board believes that this is an exciting time for GLI as we continue the execution of our long-term growth strategy.”

The group acquired the entire issued share capital of Sancus Limited in 2014 for a total consideration of £37.75m.

The proposed consolidation follows a strategic review of the company’s operations in December 2015, which Andy said revealed an “inefficient” structure.

Following completion, the combined Sancus BMS Group is expected to make a pre-tax profit of approximately £2.5m in 2016, rising to approximately £4m in 2017.

The new, unified business will operate across five jurisdictions, including the UK, Ireland, Guernsey, Jersey and Gibraltar.

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