Just days after struggling UK payday lender Wonga announced that it would divest its small business loan operations in favor of refocusing on individual consumer loans, the lender revealed who would be acquired the assets.
Orange Money will take on the SME lending operations owned by Wonga known as Everline. Orange Money, which trades as Ezbob, says that with the acquisition creates the UK’s largest digital business lender, working with more than 5,000 borrowers.
According to reports, Orange Money says with the acquisition of Everline, businesses will be able to borrow with 28-to-40 percent in savings and have the option to pay early or in full without additional fees.
The company is backed by the federal Angel Co-Fund and has approval to work as a financial intermediary for the European Investment Fund, say reports. Both the Everline and Ezbob brands will remain intact.
Ezbob will be run by Russell Gould as its chief operating officer. Gould previously served as the lender’s managing director since its 2012 launch. Orange Money CEO Tomer Guriel praised Gould’s history with the business and expressed faith that Gould would “create an even stronger business for the future.”
“This is an exciting acquisition for us,” he said, “as it brings together two strong brands in Ezbob and Everline, both of which have disrupted traditional business lending.”
While Orange Money will work to revamp both lending names, the acquisition follows Wonga’s high-profile downfall amid regulatory crackdowns and a societal shift against payday lenders. The company decided to divest its small business lending operations and cut hundreds of jobs. But the UK small business lending environment is strong, according to a recent study, with an alternative finance industry worth four times that of the rest of Europe’s combined.
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