BasePoint Capital Acquires International Personal Finance
In a significant development in the financial sector, BasePoint Capital has successfully completed the acquisition of International Personal Finance (IPF) for a staggering £543m ($733m). The all-cash transaction was agreed upon and finalised before the 31 December deadline, providing IPF shareholders with an impressive 235 pence per share. This figure matches the price initially proposed by BasePoint in September.
About International Personal Finance
IPF, headquartered in Leeds, West Yorkshire, UK, specialises in providing unsecured consumer credit and associated services to underserved clients. The company operates in nine markets, namely Romania, Poland, Hungary, Mexico, the Czech Republic, Latvia, Australia, Estonia, and Lithuania.
The company’s portfolio boasts a diverse range of products including digital instalment loans, home credit, retail credit, credit cards, a mobile wallet, and digital credit lines. These comprehensive services extend to approximately 1.7 million clients across the globe.
Acquisition Benefits for IPF
IPF’s Chair, Stuart Sinclair, acknowledges the various challenges the company has faced in recent years, including macroeconomic difficulties, competitive pressures, fluctuating regulatory landscapes, and the inherent risks of operating in emerging markets. He stated, “While the board continues to believe in the strategy and long-term prospects of IPF on a standalone basis, we recognise that the acquisition allows IPF shareholders to monetise their entire investment for cash at a fair price.”
BasePoint Capital’s Expertise
BasePoint Capital is a US-based firm specialising in providing asset-based financing and liquidity solutions to specialty finance companies. Their clientele includes small business loans, merchant cash advance solutions, and originators of unsecured consumer receivables.
The professionals at BasePoint bring to the table significant experience in asset-based lending, whole-loan sale and servicing, and securitisation, having honed their skills at prestigious institutions like JP Morgan, Morgan Stanley, UBS, GE, and Nomura.
What This Acquisition Means for BasePoint Capital
Eric Schneider, CEO of BasePoint, expressed his enthusiasm about the acquisition, stating, “IPF is a business we’ve followed for some time and have been consistently impressed by its positioning across nine different geographies as a leading provider of credit to underbanked and underserved individuals.”
He further added, “With our deep experience in consumer specialty finance in the US, we believe BasePoint is well placed to help IPF build on its strengths and continue evolving its business model as a differentiated provider of consumer credit. We’re excited and look forward to partnering with the management team to support the next phase of IPF’s growth.”
Unanimous support was given by the board of directors of IPF for this proposed transaction, signifying their confidence in this strategic move.
Find more about this acquisition Here.
