US Finance Giant Snaps Up UK Lender in £543M Cash Deal – Another British Firm Exits London Market
Leeds-based consumer loans provider agrees to American buyout after months of negotiations
International Personal Finance has sealed a £543 million takeover by US finance firm BasePoint Capital. The deal marks the end of nearly 20 years as a publicly traded company on the London Stock Exchange.
BasePoint Capital, headquartered in New York, will pay 235p per share in cash for the FTSE 250-listed company. The offer represents a 31% premium on IPF’s share price from July 29, before acquisition talks became public knowledge.
Another Blow to London’s Financial Market
The takeover adds to a growing list of UK firms either moving to overseas markets or accepting foreign buyouts. British companies continue to seek better valuations and deeper pools of investor capital abroad.
IPF operates across nine countries in Europe and Mexico, serving approximately 1.7 million customers. The company specializes in small consumer loans for individuals who typically struggle to access credit from traditional banks. Despite maintaining its headquarters in Leeds and listing on the London exchange, IPF no longer serves any customers within the UK itself.
Provident Financial established IPF as a separate division in 1997. The company gained independence through demerger and separate listing in 2007.
Five Months of Negotiations Lead to Final Deal
BasePoint Capital and IPF first revealed ongoing discussions at the end of July. The months of talks have now culminated in a definitive agreement that will transfer ownership to the American finance group.
Eric Schneider, chief executive of BasePoint, expressed enthusiasm about the acquisition. He noted that his firm has monitored IPF’s operations for an extended period and remains impressed by its strategic positioning across multiple markets.
“IPF is a business we’ve followed for some time and have been consistently impressed by its positioning across nine different geographies as a leading provider of credit to underbanked and underserved individuals,” Schneider said. He emphasized BasePoint’s extensive experience in consumer specialty finance within the United States.
Schneider believes this expertise will help IPF strengthen its existing operations and continue developing its business model. The company aims to maintain its role as a distinctive provider of consumer credit to underserved populations.
Board Acknowledges Valuation Challenges
Stuart Sinclair, chairman of IPF, acknowledged that the company’s board had been exploring strategic options to address persistent undervaluation. IPF shares consistently traded at substantial discounts compared to similar international businesses throughout the past decade.
“The IPF board has been considering its options to ensure that the market value better reflects the business’s opportunities and prospects,” Sinclair explained. He pointed to the decade-long pattern of trading below comparable firms in the sector.
While the board maintains confidence in IPF’s independent strategy and long-term growth potential, Sinclair recognized the acquisition’s benefits. The deal enables shareholders to realize full cash value for their investments at what the board considers a fair price.
Sinclair expressed belief that IPF will flourish under BasePoint’s ownership structure. He highlighted the American firm’s commitment to advancing IPF’s core mission of promoting financial inclusion globally.
What This Means for IPF’s Future
The acquisition brings capital resources and strategic expertise from a US-based specialist in consumer finance. IPF’s operations spanning Europe and Mexico will continue serving customers who face barriers to mainstream banking services.
BasePoint’s track record in American specialty finance markets could introduce new approaches to credit provision. The combination aims to strengthen IPF’s market position while expanding access to financial services for underbanked communities.
The deal requires shareholder approval and standard regulatory clearances. If completed, it will remove IPF from London’s stock market and place it under private ownership for the first time since 2007.
Financial inclusion remains central to IPF’s identity regardless of ownership structure. The company has built expertise in assessing credit risk and serving customers that traditional lenders often reject. These capabilities attracted BasePoint’s attention and drove the acquisition rationale.
Frequently Asked Questions
Who bought International Personal Finance?
BasePoint Capital, a US finance firm based in New York, bought International Personal Finance for £543 million. The American company specializes in consumer specialty finance and plans to bring its expertise to IPF’s operations across Europe and Mexico.
How much did BasePoint pay for IPF shares?
BasePoint paid 235p per share in cash for International Personal Finance. This price gave shareholders a 31% premium over the share value from July 29, 2025, when the companies first announced their talks. The total deal value reached £543 million.
Why did IPF agree to sell to an American company?
IPF’s board wanted to address persistent undervaluation in the London market. The company traded at substantial discounts compared to similar international businesses for over a decade. The cash buyout lets shareholders realize full value for their investment at what the board considers a fair price.
Will IPF still operate in the UK after the takeover?
IPF will maintain its Leeds headquarters after BasePoint completes the acquisition. However, IPF doesn’t actually serve any customers in the UK currently. The company focuses entirely on providing consumer loans across nine countries in Europe and Mexico.
What happens to IPF shareholders now?
IPF shareholders will receive 235p in cash for each share they own once the deal completes. The acquisition needs shareholder approval and regulatory clearances first. Shareholders can vote on the proposal, and if approved, they’ll get their cash payment.
Who does International Personal Finance lend money to?
International Personal Finance provides small consumer loans to people who can’t access credit from mainstream banks. The company serves approximately 1.7 million customers across Europe and Mexico, focusing specifically on underbanked and underserved individuals who traditional lenders typically reject.
When did IPF become a public company?
International Personal Finance became a separate publicly traded company in 2007. Provident Financial originally created IPF as a division in 1997, then spun it off through a demerger ten years later. The company has traded on the London Stock Exchange for nearly two decades.
What does this deal mean for London’s stock market?
The IPF takeover represents another British company leaving the London Stock Exchange through foreign acquisition. This continues a troubling trend of UK firms either moving to overseas markets or accepting buyouts, raising concerns about London’s ability to retain major financial companies.
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