UK-based workplace finance platform Salary Finance has acquired rival Neyber, a technology start-up backed by Goldman Sachs.
The financial details of the transaction were not disclosed.
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Following the acquisition, Salary Finance will become one of the largest employee financial wellbeing platforms in the UK. Companies which deduct loans directly from customers’ salaries are referred to as workplace lender.
The merged entity will have more than 500 corporate clients and serve over three million employees.
Its client base will include companies such as BT Group, the NHS, Dixons Carphone, and Virgin Active.
Salary Finance co-founder and global CEO, Asesh Sarkar, said: “The Salary Finance mission is to help millions of employees around the world become financially healthier and happier.
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By GlobalData“The Neyber acquisition, and the additional scale that gives us, takes us several steps forward in achieving our mission.”
Neyber’s existing customers will continue to make loan repayments as per the existing agreements.
Salary Finance, which also operates in the US, will be joined by Neyber’s existing investor Goldman Sachs as its new investor and continue supporting the business growth in the country.
Police Forces, another existing investor of Neyber, will also join Salary Finance as new investors.
Furthermore, Salary Finance partnered with Nest and HMRC to provide pension savings and access to HMRC’s Help to Save product.
Reception
Speaking on the transaction, Peter Briffet, CEO of income streaming service Wagestream, said: “While Neyber and others in the debt consolidation industry market themselves as “financial wellbeing” companies, it’s unclear what impact, if any, they have on consumer’s financial health.
“The low take up from employees and justified reticence among employers to promote loans has undoubtedly been one of the factors that has put Neyber in crisis, and proven it is a risky proposition.
“However, there is a positive trend towards companies opting for alternative financial wellbeing solutions. Income streaming gives workers access to money they have already earned, when they choose. This will help thousands of employees to solve their cash flow issues and start saving.
