Paragon Bank, part of one of the UK’s biggest specialist buy-to-let lenders, has made its first acquisition.
It paid £117m for Five Arrows Leasing Group, the SME asset finance lending business, from Rothschild & Co.
Five Arrows specialises in providing asset finance products through its subsidiary brands to UK SMEs, including equipment, vehicle and construction equipment finance, and is also a provider of lease servicing.
Nigel Terrington, chief executive of Paragon Group, said: “Five Arrows Leasing has a strong track record and good reputation in operating in specialist markets, which is a strong cultural fit with Paragon in view of our expertise in specialist niche markets.
“It also means we are continuing to grow and diversify as a business.”
The acquisition brings another 200 people based around the UK into the Solihull-based company.
Background box
The Paragon Group is a FTSE 250 company and a specialist finance provider employing more than 1,000 people.
In February 2014 Paragon launched its banking subsidiary, Paragon Bank, a retail-funded lending bank with a direct-to-consumer Internet platform for savings and loans.