London-based Salary Finance, a company that specializes in salary-linked savings and loans for workers across the UK, has reportedly acquired Neyber, a Goldman Sachs-backed competitor.
Neyber was founded in 2016 by former Goldman Sachs employees Martin Ijaha and Monica Kalia and joined by former Credit Suisses executive Ezechi Britto.
Salary Finance says it made the acquisition in order to expand its existing operations.
The combined company will offer financial services to around 500 customers, which employ a total of more than 3 million workers. Salary Finance’s clients include 15% of the FTSE 100 listed firms and other large organizations such as BT, Dixons Carphone, Virgin Active, Co-op, Asda and several public sector entities such as Police Forces and NHS Trusts.
The acquisition has been structured as a pre-pack administration. According to the announcement, Neyber assets have been acquired by Salary Finance and company employees have transitioned under TUPE. The terms of the deal have not been shared publicly.
Police Mutual has joined Salary Finance as an investor (involved in the acquisition). Goldman Sachs, which led a 2017 £100 million funding round in Neyber, has also joined as an investor.
Salary Finance was co-founded by entrepreneurs Asesh Sarkar, Daniel Shakhani and Dan Cobley. The company is backed by Blenheim Chalcot and Legal and General.
Salary Finance secured $32.8 million in funding back in April 2019 and hired SoFi co-founder Dan Macklin in order to expand its operations into US markets.
Asesh Sarkar, CEO at Salary Finance, stated:
“The Neyber acquisition, and the additional scale that gives us, takes us several steps forward in achieving our mission. We are excited to get to know and work with our new colleagues and clients.”