Lloyds Banking Group has agreed to acquire British digital asset wallet service provider Curve in a deal worth 120 million pounds ($139 million), according to people briefed on the deal to Sky News.
According to the latest information report The deal is expected to be formally announced next week, Sky News reported on the matter. Curve recently told shareholders that it had entered into a share purchase agreement with Lloyds, in what could be Britain’s biggest high street bank’s most significant step yet into digital payments.
However, insiders understand that the deal has sparked controversy among some of Curve’s top shareholders, who believe the valuation is well below the platform’s true value.
British Bank’s acquisition of Curve is not yet clear.
The company, which has more than 6 million users, could run out of cash this year if it doesn’t find a buyer, anonymous sources said.
In early September, chief executive Shachar Bialik acknowledged that Lloyds Banking Group had offered a lower valuation compared to previous funding rounds, but insisted Curve needed to secure its future regardless of the sale.
Since its inception, Curve has raised more than £250 million ($289 million) in funding, including £37 million ($42.8 million). funding round This took place in March this year, led by Hanco Ventures.
We are seeing issuers looking to enter the market and networks introducing innovative products such as Visa Flex and MasterCard One Credentials. This investment will allow us to further invest in our customer experience, bring in new partnerships and accelerate our path to profitability.
Shachar Bialik.
The current deal values the business at a fraction of those investments, a difference Curb shareholders have criticized and are now seeking legal action to block the sale.
IDC Ventures threatens Curve and Lloyds Banking Group
Sky News reported that Curve’s early shareholders, including IDC Ventures, the company’s largest external investor with a 12% stake, have publicly rejected the deal and threatened legal action.
IDC Ventures issued a statement saying it was deeply concerned about how Curve’s management and board handled the sale negotiations. A company spokesperson told Sky that the deal was not in the company’s best interests, with governance and ownership issues unresolved at the time of the deal.
It is truly surprising to shareholders that Lloyds Banking Group is considering proceeding with a transaction that IDC believes is not in the best interests of the company or its shareholders. IDC does not intend to support the proposed sale and does not believe it can be conducted without such support.
IDC
In a message to shareholders, Curve acknowledged its disappointment with the valuation, adding that the offer did not meet its pre-set expectations.
We recognize that the value of this transaction falls short of the ambitions we all had for Curve, and we share that some may be disappointed with this outcome. However, the Board strongly believes that this transaction is the best path forward for Curve’s creditors and shareholders as a whole.
curve.
IDC Ventures said last Friday that it would protect its commercial interests and asked both Curve and Lloyds to address concerns before moving forward with their plans. acquisition.
Curve wallet faces internal leadership and governance issues
In July, IDC Ventures sought to remove Sir Stanley Fink, a former Conservative Party treasurer and City celebrity, as chairman of Curve. The fund suggested that the board of directors simply reappoint him two days later, even though the shareholders who appointed him had already removed him.
At Curve’s extraordinary general meeting (EGM) held in early October, opponents unsuccessfully tried to remove both Mr. Fink and CEO Bialik through a shareholder vote.
IDC Ventures, led by London-based law firm Quinn Emanuel, has been involved with Curve for six years and has participated in several major funding rounds. In a statement shared with Sky News last month, investors said they were troubled by the lack of transparency surrounding Mr Fink’s reappointment and the board’s handling of the sale process.
