Workplace finance platform Salary Finance has acquired competitor Neyber in a deal completed on 9 March 2020.
As part of a pre-pack administration, Neyber's assets have been acquired by Salary Finance, and staff transitioned under Transfer of Undertakings (Protection of Employment) Regulations (Tupe). Pre-pack administration allows for the sale of a business and its assets prior to the appointment of administrators.
Police Mutual will join Salary Finance as a new investor as part of the acquisition, alongside Goldman Sachs, another former Neyber investor.
Following the acquisition Salary Finance will serve 500 clients, including 15% of the FTSE 100.
Neyber’s existing customers will continue to make loan repayments in line with their existing agreements; if any action is required they will be contacted by a member from Salary Finance.
Asesh Sarkar, co-founder and global chief executive officer at Salary Finance, said: “We are delighted to welcome the Neyber team and clients to the Salary Finance community, and thank the Neyber founders Martin Ijaha and Monica Kalia for building such a strong team and helping to create a category that hundreds of employers credit with helping the lives of their staff.
“The Salary Finance mission is to help millions of employees around the world become financially healthier and happier. 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.
“Salary Finance addresses a social problem, and market failure, where 40% of UK employees have no savings, and over six million employees have been refused a high street loan, leaving them little option but to take high-interest debt. We address this issue at scale, with products which are better value and create better financial habits, such as auto savings-linked directly from pay.”
