Point-of-sale lender acquired by Secure Trust bank
Secure Trust Bank is to expand its financial services portfolio with the acquisition of point-of-sale lender V12.
Secure Trust Bank (STB) has completed a deal to acquire the entire share capital and loan book of prime market point-of-sale lender V12.
Business negotiations have been successfully completed to allow the deal to go through, with STB also paying off V12's outstanding debts.
Payment will include an initial £3.5 million when the deal is completed in the new year, followed by a sum of £7 million to pay off V12's subordinated debts and funding to clear a £28.5 million facility with Royal Bank of Scotland.
V12, including its subsidiaries V12 Retail Finance Ltd and V12 Personal Finance, will continue to trade under the same name.
Chief executive of Solihull-based STB Paul Lynam said: "The acquisition of V12 gives us greater critical mass and ownership of a technology-based platform necessary to provide consumers with in store and online point of sale finance."
Other financial institutions in the Midlands who have been involved in recent merger activity include the Nottingham and Shepshed Building Societies, which announced merger plans earlier this month.