The board of UK challenger bank Aldermore has recommended a £1.1 billion takeover offer from South African financial services firm FirstRand.
In a statement, Aldermore says FirstRand has offered 313 pence per share, a 22% premium on the bank's Friday closing price.
Founded in 2009, Aldermore was one of the first challenger banks to take on the UK's high street giants, operating purely online and over the phone, focusing on small business lending and mortgages
The firm, says that customer deposits increased by eight per cent, to £7.2 billion, in the third quarter, while net loans grew by 12%, to £8.4 billion.
Phillip Monks, CEO, Aldermore, says: "With the backing of their [FirstRand's] considerable resources and wider capabilities, we will be able to accelerate the delivery of our strategy and further expand the products and services we offer our customers."