in Uncategorized

#TrustBuddy: Major news from Sweden’s #P2P company

TrustBuddyLogoMajor news out this morning from TrustBuddy. The world’s so far only listed Peer-to-Peer (“P2P”) lender, announces that it has conditionally agreed to acquire two leading P2P companies, Geldvoorelkaar and Prestiamoci. Incorporating these two P2P platforms will add business loans to small and medium-sized enterprises (“SMEs”) and long term consumer credit to TrustBuddy’s existing offering, creating a leading diversified Peer-to-Peer platform.

TrustBuddy has conditionally agreed to acquire Geldvoorelkaar and Prestiamoci, for a total consideration of EUR 15.9 million of which EUR 11.4 million is in TrustBuddy shares or vendor loan notes. Both acquisitions remain subject to the satisfaction of certain conditions. In particular, the acquisition of Prestiamoci is conditional upon Prestiamoci receiving a payment services, PSD, license. The Company is currently considering various financing options, including a potential equity fundraising, to part finance the acquisitions. TrustBuddy has received indication of strong support from key existing investors for the transactions and a further announcement will be made in due course.

Jens Glasø, TrustBuddy CEO, comments: “At TrustBuddy, we strive for increased access to European P2P consumer and SME lending markets in order to accelerate future revenue growth. The proposed acquisitions of Prestiamoci and Geldvoorelkaar are clearly in line with this strategy. By implementing our brand new proprietary lending platform for fast, easy and secure lending, TrustBuddy is strengthening its position in highly attractive and rapid growing markets. The acquisitions also bring with them experienced management which complement our existing team’s skills.”

In addition to the two acquisitions, TrustBuddy is also providing the market with a trading update this morning:

“The Company announces it expects to report Q3 revenues of SEK 30 million and losses after tax of SEK 6.6 million. Q4 trading has started with revenue of SEK 10 million in October. Q4 revenue should show growth on Q3, as first deployment of institutional capital has begun in Q4.  This revenue expectation is indicative only. The actual revenues achieved may differ materially and there should be no expectation that actual revenues will be the same as, or similar to, this target.”

We think it is fantastic news that TrustBuddy is expanding both geographically but even more importantly into SME-loans and long-term consumer credit. This diversifies the business and clearly shows that TrustBuddy is a leading P2P-player.

Nordic Investor

 

Related Posts

What is your opinion? Let us know