Funding Circle to sell US business to iBusiness Funding for £33m

Funding Circle said on Tuesday that it has agreed to sell its US business to Miami-based iBusiness Funding (IBF) for £33m.

The sale includes all loan portfolios and would lead to a £10m gain before transaction costs. Proceeds from the deal will be reviewed in line with the company's capital allocation framework.

Chief executive Lisa Jacobs said: "In March, I announced that we were simplifying the business by exiting the US and focusing on profitable growth in the UK business. Alongside the UK restructuring actions announced in May, we are continuing to execute against this plan with the sale of the US business to IBF.

"The UK business is on track to be profitable in H2, in line with our guidance."

Over the medium term, Funding Circle expects net income growth of 15-20% compound annual growth rate with profit before tax margins of more than 15%, she said.

IBF is a provider of lending solutions for banks and lenders of all sizes with a specialisation in US Small Business Administration lending. It has processed over $6bn in SBA loans to date.