Metro Bank has announced it will buy RateSetter for up to £12mn.
In Brief:
RateSetter is a peer-to-peer lending platform.
It won’t include RateSetter’s Australia platform which will remain owned by shareholders.
RateSetter was founded in 2010 and has lent to more than 750,000 people.
What does this mean?
RateSetter won’t get the full potential amount straight away – reflecting the risky environment, Metro Bank will make the initial acquisition for £2.5mn, will pay up to £0.5mn 12 months after completion, then look to pay £9mn three years after the deal if certain criteria are fulfilled.
