Starling Bank acquired Fleet Mortgages for £ 50million in cash plus a stock transaction.
This move will see Starling act as the sole funder for the purchase and lease transactions in which Fleet specializes.
Starling’s latest business update, released on July 22 of this year, reports that the bank has £ 5.8bn in deposits in 2.1m accounts – with the first figure rising 500% on a annual basis.
Fleet will continue to operate under its own brand and the current management team will remain in place.
In mid-April, Starling raised £ 50million from US banking giant Goldman Sachs.
Starling Managing Director Anne Boden wrote in a letter in July that the company was considering an initial public offering, “When it’s good for our business, not just because it’s fashionable to fit into the pack. “
Fleet Chief Executive Officer Bob Young said: “It is certainly an exciting time to come for all associated with Fleet and, with ambitious new shareholders on board, it has the potential for us to launch into new ones. product sectors and further increase our market share. This acquisition opens up a range of opportunities that would not be available to us otherwise.
“Starling Bank will handle all of our financing, which will allow us to focus on achieving our important and ambitious financing and growth goals. This is a natural progression for our lending business, with Starling and Fleet sharing a very similar cultural fit and provides us with a very strong lending base from which to work and deliver for our staff, partner advisors and clients. owners. “
And Boden commented: “The acquisition of Fleet Mortgages marks the start of our transition to mortgages as an asset class and builds on a number of term agreements that we are entering into with major non-mortgage lenders. banking.
“Fleet’s current management team will remain in place and Fleet will continue to operate as a stand-alone business, retaining the original name and brand.
“We buy Fleet because he’s great at what he does, not because we want to change him.”
There have recently been a number of acquisitions in the mortgage industry. On July 15, Athene agreed to purchase Foundation Home Loans and Better announced the acquisition of Trussle.