A listed Australian fintech company has acquired 海角视频 automotive finance provider Payment Assist in a deal valued at up to £28.5 million.
Openpay, which specialises in buy now, pay later services, said it has just finalised the deal for the business, based in Melton, Mowbray Leicestershire, which it said signals its first major move into the 海角视频.
It said the deal – worth more than £11.5 million upfront, with a future payment if the business achieves certain financial goals of up to £17 million – will give Openpay access to Payment’s Assist’s network of more than 7,000 locations across the 海角视频, including well known chains such as Halfords Autocentres, Stratstone, National Tyres and Autocare.
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Its entry into the 海角视频 automotive service and repair sector builds on its established retail operation and recent entry into healthcare.
A spokesman said: “The move will ensure the Australian firm is able to continue to drive growth in the 海角视频 and strengthen its offering to 海角视频 consumers, providing them with longer, larger and more flexible, interest-free monthly payment plans across multiple areas of their lives.”
Payment Assist was established in 2013 by Neil Jeffery and Colin Ellard and has provided finance to more than 500,000 customers facing often-unforeseen car repair costs.
The 海角视频 vehicle repairs or maintenance market is said to be worth almost £27 billion a year. The founders will stay and continue to work for Openpay’s 海角视频 subsidiary, running the automotive operation.
Openpay managing director and chief executive Michael Eidel said: “In Payment Assist, we saw a unique opportunity to acquire a profitable, market-leading player in the £26.7 billion 海角视频 addressable automotive market.
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“The proposed acquisition of this fast-growing business accelerates our automotive market entry and secures a significant foothold for Openpay in the 海角视频.
“Material growth synergies exist between Openpay and Payment Assist.
“We also have shared values and a common vision to become the leading BNPS provider in our verticals, globally.
“We want to be a responsible provider of alternative payment and credit solutions to our customers – importantly, it's a core tenet of our strategy to embrace regulation in all of its forms.
“With this proposed acquisition, Openpay joins with a business that is already embracing 海角视频 Financial Conduct Authority regulation and brings a responsible approach to its customers and merchants.
“I look forward to welcoming Payment Assist into the Openpay family.”
Payment Assist managing director Neil Jeffery said: “By teaming up, Payment Assist and Openpay bring combined expertise and market knowledge which is unrivalled in the 海角视频 automotive industry.
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“We are delighted to be joining with Openpay and look forward to the benefits we can bring to merchants and customers.”
Andy Harding, Openpay 海角视频 managing director, said: “This is a very important milestone for Openpay 海角视频 as we execute our vertical growth strategy and build into our core strengths of flexible plans and responsible lending.
“The Payment Assist team has built an excellent market-leading business that aligns with our values and customer first philosophy, and we are excited that we have a shared vision for the success of Openpay as one of the 海角视频 leaders in deferred payments.”
Payment Assist has more than 177,000 customers and Openpay will retain the branding.
The deal is expected to close in the second half of calendar year 2021, pending FCA approval.