Metro Bank has announced it will buy RateSetter for up to £12mn.
In Brief:
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RateSetter is a peer-to-peer lending platform.
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It won’t include RateSetter’s Australia platform which will remain owned by shareholders.
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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.
