Metro Bank Acquiring RateSetter for £3M

Earlier in the summer we learned that Metro Bank was in talks with RateSetter on a possible acquisition; today, it was announced a deal has been agreed to with just £2.5 million being paid up front for RateSetter UK with another £500,000 payable in 12 months; there is also another £9 million that is on offer if RateSetter can achieve certain performance criteria; the deal does not include RateSetter Australia; the RateSetter retail investor marketplace will be closed to new investors with all future personal loans funded by Metro Bank’s deposit base; RateSetter has raised £43 million in venture capital over the past 11 years so this will be a significant haircut for all their investors; RateSetter CEO Rhydian Lewis said, “RateSetter and Metro Bank share a focus on delivering something better for the customer and the strategic logic of pairing Metro Bank’s strong deposit base with our lending capability is compelling.” AltFi.