Hamilton Locke is delighted to have advised Prospa Group Limited (ASX: PGL) (Prospa), Australia’s leading online lender to small businesses, on its successful acquisition of the Zip Business loan portfolio from Zip Business Pty Ltd (Zip) for approximately A$15.6 million. This strategic transaction, funded through Prospa’s existing warehouse funding arrangements, was settled last week.
The acquisition included all of Zip’s remaining performing Australian business loans, totalling approximately $18.4 million and encompassing around 370 small businesses. This move significantly bolsters Prospa’s position in the market and reaffirms its commitment to supporting the Australian small business community. Hamilton Locke played a pivotal role in facilitating the legal aspects of this strategic transaction, ensuring a seamless process for both Prospa and Zip.
Commenting on the transaction, Hamilton Locke Partner Adam Jeffrey said: “This strategic acquisition marks a pivotal moment in Prospa’s journey, solidifying its market position and reinforcing their commitment to Australian small businesses. Our partnership with the team at Prospa goes beyond this transaction and we look forward to continuing to support them in their ongoing growth and expansion endeavours.”
The team at Hamilton Locke was led by Finance Partner Adam Jeffrey. Partner Michele Levine and Senior Associate Nicholas Pavouris from our financial services team supported the transaction and conducted due diligence on the Zip loans and advised Prospa on UCT and other regulatory matters.
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