Derby firm Mortgage Advice Bureau (MAB) has agreed to acquire approximately 75% of Project Finland Topco Limited, or the “Fluent Money Group,” in a £73 million deal.
Bolton-headquartered Fluent is a technology enabled telephone advice mortgage broking platform with approximately 420 employees including 125 advisers across Mortgages (first charge mortgages), Secured Personal Loans (second charge mortgages), Later Life lending and Bridging Finance.
The acquisition will be funded from renewed and increased debt facilities, existing cash resources and the proceeds of a proposed placing of new ordinary shares in the company to raise £40 million.
Completion of the acquisition is not expected to occur before the second half of 2022.
Peter Brodnicki, founder and CEO of MAB, said: “We are very excited to partner with a like-minded management team and high growth intermediary that is a leader in centralised telephone mortgage advice.
“This acquisition is a perfect example of our strategy to invest in complementary businesses and platforms to help accelerate growth by broadening our proposition. MAB has targeted the fast-growing sector of national lead generation by using technology to link together its key Appointed Representatives and invested firms seamlessly.
“Combined, we expect that Fluent and MAB will be able to grow this new market share opportunity quickly and effectively, complementing the local/regional strategy delivered by the rest of MAB’s growing distribution.”
MAB has also entered into a shareholders’ agreement with founders/management who will be retaining 25% of the issued share capital of Fluent at completion. This also provides for a put and call option for MAB to acquire the remaining stake after 6 years at a valuation subject to performance criteria relating to future growth and profitability to align with MAB’s growth objectives. The total consideration for this put and call option and a put and call option over growth shares that will be issued in Fluent to the wider management team will be capped at £118m.
