Private equity firms Cinven and CVC Capital Partners today announced a deal to acquire store card maker NewDay.
The private equity houses have agreed a deal to buy NewDay from Varde Partners and although sales value is unknown, it is believed to ascribe an enterprise value of around £1bn to the company.
The deal comes after NewDay abandoned plans to launch an initial public offering (IPO) in the aftermath of the EU referendum result.
Announcing the deal, Cinven and CVC said NewDay is the “UK’s fastest growing speciality finance company, providing credit to more than five million customers and with £1.6bn of receivables”.
NewDay is behind both Near-Prime, which provides branded credit cards to customers who are new to credit or wish to rebuild their credit history, and Co-brand, which provides cards in partnership with the likes of Debenhams and House of Fraser.
NewDay, which has more than 800 staff and is headquartered in London with additional operations in Leeds, will continue to be led by chief executive James Corcoran.
We are delighted to be working with Cinven and CVC going forward – both have an excellent track record of supporting growing businesses and as responsible investors in the financial services sector. They are both fully aligned with NewDay’s objectives of continuing to grow by offering compelling products and services to our customers alongside the highest standards of risk management.