Manx Financial Group - Payment Assist acquisition
Manx Financial Group (MFG) has announced it is buying 50.1% of Payment Assist, a UK point-of-sale lender, for £4m. Through Conister Bank, MFG has provided Payment Assist with wholesale funding over seven years and seen the company grow. This acquisition continues MFG’s strategy of acquiring interests in high-quality specialist lenders. Payment Assist, which started business as an automotive repair point-of-sale finance provider, has been expanding and diversifying its lending business. Payment Assist management will remain on board, including the CEO and COO. The deal has an estimated price/book value of 1.8x but the goodwill (estimated at £1.75m) is readily absorbable by MFG’s capital (FY21 total capital ratio of 19.1%, tangible equity of £17.3m). Payment Assist had a £1.1m operating profit in FY21, which suggests the deal should be earnings enhancing from day one and backs MFG’s statement that no shareholder dilution is expected.Manx Financial Group is a holding company. Through its subsidiaries, Co. is engaged in the provision of asset and personal finance, investing activities and wealth management. Co. operates four product segments: Asset and Personal Finance (including provision of hire purchase contracts, finance leases, personal loans, commercial loans and block discounting); Litigation Finance; a Prepaid Card division, Conister Card Services; and a Wealth Management division. As of Dec 31 2012, Co. had total assets of £77,978,000 and total customer deposits of £62,731,000.
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