Funding Circle Sells US Business to iBusiness Funding for £33m

Funding Circle Holdings plc has finalized an agreement to sell its US business to iBusiness Funding, LLC for £33 million. This transaction includes all loan portfolios and represents a £10 million gain before transaction costs. The company plans to review the proceeds in accordance with its capital allocation framework.

CEO Lisa Jacobs emphasized that the sale aligns with Funding Circle's strategy to simplify operations by exiting the US market and focusing on the UK, which is expected to show profitable growth in the second half of the year. The company anticipates a medium-term net income growth of 15-20% CAGR with pre-tax profit margins exceeding 15%.

iBusiness Funding, a leading SMB loan processor, will integrate Funding Circle's US operations, enhancing its capacity to issue SBA loans to small businesses. The Ready Capital group, the parent company of iBusiness Funding, already holds an SBLC license, enabling a smooth transition. The sale is set to close by the end of June.

Justin Levy, CEO of iBusiness Funding, expressed enthusiasm about the acquisition, highlighting the potential to better support US small businesses through combined efforts. Funding Circle's US team has been thanked for their dedication over the past decade.