Close Brothers Group PLC has announced its acquisition of Novitas Loans.
The Salisbury-based provider of loans to the legal sector will now become part of Close Brothers Invoice Finance and Rentals.
The acquisition is expected to strengthen the merchant banking group's existing offering, which includes professional indemnity funding, VAT and practice loans.
Novitas will bring knowledge of the legal sector and will retain all its staff, who will remain based in Salisbury.
“We are committed to growing our market-leading working capital funding proposition both organically and with selective and high-quality acquisitions,” said David Thompson, chief executive of Close Brothers Invoice Finance and Rentals Division.
“The acquisition of Novitas fits perfectly with this strategy and we are looking forward to working with a strong team of people in an area where we anticipate a strong growth trajectory.”
Novitas provides working capital for law firms as well as loans to their clients purchasing specific legal services.
The lender also strengthens the balance sheets of law firms.
Both lenders expect a strong growth in the legal funding sector, where growing strains on cash flow are becoming an increasing impediment to accessing legal services.
Jason Reeves, managing director of Novitas, believed that in Close Brothers it had found the right partner to support it and allow it to unlock its growth potential.
“The company's experience and approach to doing business complements ours and I know our clients will benefit from the stable funding and lending expertise that Close Brothers brings.
“We are looking forward to exciting times ahead as we scale up both within the Salisbury area and around the country.
“The time is right to increase our already strong loan book, and working with Close Brothers will help us with our ambitious growth plans.”
-
Temenos partners with ClearBank for cloud payments
Banking software company Temenos has formed a strategic relationship with ClearBank to provide banks with a faster route to market for real-time cloud payments...
-
Unity Trust Bank registers 34% rise in profits
Unity Trust Bank increased profits by 34% in 2019...
-
Believe the hype – why explainable AI is a trend that’s here to stay
Technology has become a ubiquitous part of our day-to-day lives...
-
Piloting tech updates: ‘The bigger the bank, the harder it is to get anything done’
In the latest Medianett filmed roundtable session, we discussed how important technology is in the banking space, and what impact the industry expects it to have on its businesses in the future...
-
What banks need to know about cloud security
One of the most common perceived concerns when adopting the cloud is the issue of security...
-
OakNorth sees 95% increase in pre-tax profits
OakNorth Bank has announced a 95% rise in pre-tax profits in 2019 to £65.9m, up from the £33.9m recorded in 2018...
-
Redwood Bank signs up to Women in Finance Charter
Redwood Bank has announced that it has signed up to the Women in Finance (WIF) Charter...
-
Masthaven launches digital Women in Leadership programme
Masthaven Bank has launched a new Women in Leadership digital development programme for female senior leaders...
-
Protecting against supply chain disruption and the domino effect
Disappointingly, many UK SME business owners don’t understand their supply chains...
-
Confused about which Isa to choose? Hopefully this mini-guide will help…
We are now firmly in Isa season, so you’re likely to read multiple articles about the most competitive Isa products in the market and how best to make the most of your Isa allowance before the end of the tax year...
-
Garden shed entrepreneurs contribute £16.6bn to the UK economy
Entrepreneurs who run their businesses from garden sheds contribute £16.6bn annually to the UK economy, according to a recent study...