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Lunar bails out of P2P market

Lunar bails out of P2P market

Denmark's Lunar bank is to offload its P2P business to Swedish investment platform SaveLend Group.

Lunar moved into the P2P market in 2021 following the takeover of Sweden's Lendify in an all-stock transaction worth €100 million.

The acquisition date is expected to occur in the summer of 2023, whereby SaveLend Group will take over the P2P business in its entirety. No purchase price is paid upon entry, instead, a performance-based remuneration will be paid to Lunar, amounting to 50% of actual revenues during the period 2023-2027 from the active investments taken over.

Mats Bergius Persson, country manager Sweden at Lunar, comments: "After careful evaluation, we see that significant investment in the P2P offering would be required to continue to provide the best user experience for our P2P customers and to scale the business. In SaveLend, we instead found the perfect partner as they only focus on developing the P2P portfolio for the benefit of the users."

The acquisition adds approximately 17,000 active investors to SaveLend, of which about 10% are already investing on SaveLend’s platform, and 7,000 active borrowers. Excluding synergy effects, which are expected to be significant, the deal during the period 2023-2027 is expected to increase SaveLend Group's turnover by approximately SEK 40 million and strengthen cash flow by about SEK 20 million.

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