Satago signs commercial agreement with Lloyds
29 July 2022
TruFin plc
("TruFin" or the "Company")
Satago Financial Solutions Limited ("Satago") announces the signing of the commercial agreement with Lloyds Bank plc ("Lloyds Banking Group" or the "Bank").
TruFin is pleased to announce that further to the Company's statement on 9 March 2022, Satago and Lloyds Banking Group have entered into a five-year commercial agreement for the Bank to license Satago's software platform for use by the Bank's Single Invoice Finance and Whole of Book Invoice Factoring customers.
Satago's platform gives the Bank a new digitised proposition with which to further support UK businesses. Satago will receive a recurring fee for each Bank customer which utilises its platform, plus one-off implementation fees. Satago expects the software platform to be made available to the Bank's customers during Q4 2022.
This landmark contract, coupled with its growing pipeline of commercial partners, ensures Satago is well positioned to roll out its best-in-class platform - benefiting thousands of Single Invoice Finance and Whole of Book Invoice Factoring customers - in the years ahead.
Additionally, TruFin has today completed a further £2 million investment in Satago, as contemplated at the time of TruFin's recent fundraising announced on 22 March 2022. For the purposes of this investment, the valuation of Satago is the same pre-money valuation that Lloyds Banking Group participated at for their £5 million investment, as announced on 9 March 2022. Following this transaction, TruFin holds approximately 67% of Satago.
The signing of the commercial agreement constitutes a related party transaction under the AIM Rules for Companies (the "AIM Rules"), by virtue of Lloyds Banking Group being a substantial shareholder, as defined in the AIM Rules, of Satago, a subsidiary of the Company. The directors of TruFin consider, having consulted with the Company's nominated adviser, Liberum Capital Limited, that the terms of the transaction are fair and reasonable insofar as shareholders of the Company are concerned. The Company believes that the commercial terms are in line with market norms.
The Company confirms that it continues to trade in line with market expectations.
Sinead McHale, Chief Executive Officer of Satago, commented:
"The signing of this commercial agreement further solidifies our position as the best-in-class provider of innovative working capital solutions, I am immensely proud of our work to deliver a newly constructed Invoice Finance solution for Lloyds Banking Group.
By working collaboratively with the Bank, together we will deliver a solution that democratises working capital solutions for SMEs all over the UK, regardless of size or sector."
Ben Stephenson, Managing Director and Head of Specialist Client Solutions, Lloyds Bank Commercial Banking said:
"This partnership demonstrates our commitment to helping businesses to optimise their working capital in order to recover, diversify, and grow. By partnering with Satago, we are enhancing the choices and speed at which SMEs can access finance solutions which is fundamental to our purpose of helping Britain prosper."
James van den Bergh, Chief Executive Officer of TruFin, commented:
"This commercial agreement with Lloyds Banking Group represents a transformational event for Satago. Combined with the strong pipeline of additional customers, the agreement has the scope to deliver significant value for TruFin and its shareholders."
The information contained within this Announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No.596/2014 as amended by The Market Abuse (Amendment) (EU Exit) Regulations 2019. By the publication of this Announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain. The person responsible for arranging for the release of this Announcement on behalf of the Company is Annie Styler.
For further information, please contact:
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TruFin plc is the holding company of an operating group comprising four growth-focused technology businesses operating in niche markets: early payment provision, invoice finance, IFA finance and mobile games publishing. The Company was admitted to AIM in February 2018 and trades under the ticker symbol: TRU. More information is available on the Company website:
www.TruFin.com
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