TruFin PLC Statement re Satago (1062E)
March 09 2022 - 2:00AM
UK Regulatory
TIDMTRU TIDMTRU
RNS Number : 1062E
TruFin PLC
09 March 2022
9 March 2021
TruFin plc
("TruFin" or the "Company")
Satago Financial Solutions Limited ("Satago") announces that its
platform has been selected by Lloyds Bank plc ("Lloyds Bank" or the
"Bank") as the platform of choice to support the provision of
invoice factoring solutions to Lloyds Bank customers. In addition,
Lloyds Banking Group ("LBG") will make a strategic investment of
GBP5m in Satago.
TruFin is pleased to announce that following the conclusion of
the commercial pilot first announced on 11 December 2020, and a
competitive tender process, Lloyds Bank has confirmed its intention
to enter into a commercial agreement to license Satago's software
platform for its Single Invoice Finance and whole of book Invoice
Factoring customers. Satago and Lloyds Bank have signed a letter of
intent and are working towards finalising a commercial agreement in
the coming months.
Satago's platform will introduce a new digitised proposition
designed to help the Bank further support UK businesses. Satago
expects to be paid a recurring fee for each customer of the Bank
which utilises Satago's platform, as well as one-off implementation
fees, with the final terms of this landmark agreement subject to
commercial negotiation.
TruFin is also pleased to announce that, ahead of signing the
commercial agreement, Lloyds Banking Group has today completed an
investment of GBP5 million of new equity capital in Satago, at a
pre-money valuation of GBP20 million. All parties believe that the
commercial agreement will be transformational for Satago and has
the potential to deliver significant equity value uplift for
Satago.
TruFin has agreed to vary the terms of an existing GBP3 million
loan to Satago so that it is convertible into equity capital in
Satago at the same valuation as the LBG investment or, if a further
funding round takes place, the valuation implied by the funding
round. Assuming conversion based on the GBP20 million valuation
(and assuming LBG does not subscribe for its pro rata entitlement
to shares), TruFin would hold approximately 68% of Satago (on a
fully diluted basis).
In addition, the Company is delighted to announce Ben Stephenson
will be appointed to the Board of Satago. Ben is Managing Director
and Head of Specialist Client Solutions at Lloyds Bank Commercial
Banking and is responsible for the teams who provide SMEs with
Invoice Finance, Trade, Payments, Asset Finance and Merchant
Services solutions. He sits on the Executive Committee of the LBG's
SME and Mid Corporates Business and is a member of the UK Finance
IF&ABL Product Board.
As Satago rolls out its best-in-class platform to a growing
pipeline of leading finance providers, the Board believes there are
multiple value accretive developments to follow.
Sinead McHale, Chief Executive Officer of Satago, commented:
"We are delighted to have been selected as the vendor of choice
for the provision of Single Invoice Finance and whole of book
Invoice Factoring services by Lloyds Bank. This announcement is the
start of the next stage of our relationship with Lloyds Bank and is
testament to the innovative and intelligent use of data and
technology which makes our proposition best in class. We are
reinventing invoice finance as a mainstream product - making it
available to all UK businesses regardless of size or sector. We are
extremely proud to have secured such a landmark partner to help
with this endeavour and delighted to welcome them as an investor in
the business. Satago have a significant pipeline of further
opportunities allowing an ever-growing number of SMEs in the UK to
benefit from its award-winning products."
Ben Stephenson, Managing Director and Head of Specialist Client
Solutions, Lloyds Bank Commercial Banking, said:
"Extending our partnership with a leading Fintech like Satago
represents a truly exciting opportunity for LBG and our clients.
Combining Satago's technology with LBG's reach and focus on Helping
Britain Prosper has created a market leading proposition that
provides clients with much needed working capital management and
cash flow optimisation tools. I am delighted and proud that LBG and
Satago are playing a leading role in modernising the way working
capital solutions are distributed to SMEs."
Gwynne Master, Managing Director, Working Capital, Lloyds Bank
Commercial Banking, said:
"Our partnership with Satago goes beyond that of a supplier and
buyer relationship. The equity stake we have taken in the business
underscores our commitment to deliver best-in-class, future-focused
solutions for our UK clients by partnering with a market leading
provider with proven capability."
James van den Bergh, Chief Executive Officer of TruFin,
said:
"We are very proud that Satago has been selected as the vendor
of choice for the provision of Single Invoice Finance and whole of
book Invoice Factoring services by Lloyds Bank. We welcome the Bank
as a shareholder in Satago and are excited about the value that
Satago will create through this landmark commercial and strategic
partnership. We continue to believe there is meaningful value to be
unlocked from our portfolio of companies and thank shareholders for
their ongoing support."
The information contained within this Announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No.596/2014 as amended by The
Market Abuse (Amendment) (EU Exit) Regulations 2019. By the
publication of this Announcement via a Regulatory Information
Service, this inside information is now considered to be in the
public domain. The person responsible for arranging for the release
of this Announcement on behalf of the Company is Annie Styler.
For further information, please contact:
TruFin plc
James van den Bergh, Chief Executive Officer 0203 743 1340
Kam Bansil, Investor Relations 07779 229508
Liberum Capital Limited (Nominated Adviser and
Corporate broker)
Chris Clarke
Edward Thomas 0203 100 2000
TruFin plc is the holding company for an operating group of
companies that are niche lenders and early payment providers.
TruFin Group combines the benefits of both the traditional
relationship banking model and developments in the fintech sector.
The Company was admitted to AIM in February 2018 and trades under
the ticker symbol: TRU. More information is available on the
Company website www.TruFin.com
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END
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