Transaction Details

September 1, 2013
Manchester

Sector

Financial Technology and Services

Deal Type

M&A

Deal Value

£19.4m

Deal Team

Phil Adams, Paul Lines, Adam Sivner

GCA Altium acted as financial adviser and Nomad to Renovo on the £19.4m recommended acquisition of Ultimate Finance Group by way of scheme of arrangement.

Renovo is an AIM-quoted cash shell with an investment policy focused on the SME financial services sector. The company’s strategy is to deploy long-term capital and become a leading provider of credit facilities to UK SMEs.

In December 2012, Renovo invested £1.7m as part of £2.6m fundraising that Ultimate Finance Group (UFG) was undertaking, taking a 12.3% stake in UFG. UFG is an AIM-quoted asset-based lender to SMEs, offering invoice discounting, factoring, asset finance and trade finance.

The acquisition of UFG is the first step in implementing Renovo’s strategy, which will provide an SME loan book of approximately £40m to over 850 customers. Renovo will support UFG in its growth plans by providing the security of a principally cash backed balance sheet and continuing to innovate the business model through a more technology focused platform. In addition Renovo will continue to evaluate further acquisitions and alternative routes to access funding for SMEs at commercial rates which are accretive to the strategy.

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