Credit card issuer Newday to purchase finance platform Deko

Credit card issuer Newday to purchase finance platform Deko

UK credit card issuer NewDay is set to acquire retail finance platform Deko in bid to diversify its offering.

It has been reported by Sky News that NewDay is sizing up the opportunities that technology platforms offer in payments and credit.

Deko offers instalment credit and consumer loans via a panel of lenders, processing more than £2 billion in lending volumes over the last decade.

The deal has been referred to by one source as a "collision point" between NewDay's payments and credit operations.

Deko will continue as a standalone business after its acquisition, which is subject to regulatory approval.

The deal is worth a reported £40m, in what is NewDay's first  transaction under new chief executive John Hourican.

Hourican, the former RBS executive, left his role as chief executive of Bank of Cyprus to take charge of NewDay in March 2019.

The company, which held 4.7 million customer accounts at the time of Hourican's appointment, runs co-branded credit cards with such companies as Amazon, Debenham and Arcadia Group.

NewDay was purchased by private equity firms, Cinven and CVC Capital Partners in January 2017, shortly after dropping plans for an IPO.

There are rumours however that these plans will be revisited in the near future, and this deal is an attempt to make NewDay a more attractive acquisition to investors.

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