Zempler Bank Valuation Slashed in Nigeria’s Access Bank Takeover

London-based fintech Zempler Bank has been acquired by Nigeria’s biggest bank, Access Bank UK, in a deal that significantly reduces the firm’s valuation. The acquisition price is approximately £3.45p per share.

Valuation Drop

The sale represents a substantial decrease in value for Zempler, which previously achieved an £80 million valuation during a 2020 fundraising round. Shares in that raise were priced at just over £9, marking a dramatic shift in the company’s financial standing.

Did You Know? Zempler, formerly known as Cashplus, reported record revenues of £52m and a profit after tax of £5.5m in 2023.

Financial Performance

Despite the acquisition occurring at a lower valuation, Zempler demonstrated a 58 per cent increase in profit, reaching £5.2 million in its latest financial year. However, net loans decreased by 10 per cent, falling from £28.2 million to £25.5 million during the same period. Debt charge-offs also rose, increasing from £4.3 million to £5.9 million.

Muted Lending and Delinquencies

Zempler attributed the financial results to “higher delinquencies resulting from the cost of living crisis” and “early defaults emergence from prior year acquisitions following a prolonged period of muted lending.” The firm also cited “proactive balance sheet management” as a contributing factor.

Expert Insight: This acquisition highlights the increasing consolidation within the fintech sector, as larger institutions seek to expand their reach and capabilities by acquiring smaller, innovative companies. The significant reduction in Zempler’s valuation suggests a changing risk appetite in the market and the challenges faced by fintechs in maintaining growth amidst economic headwinds.

Access Bank’s Expansion

Access Bank UK, the acquiring entity, saw its pre-tax profit increase by 14.5 per cent to £173.4 million in the 2024 financial year. The bank’s assets also grew substantially, increasing by nearly 40 per cent to $6.13 billion. Access Bank UK specializes in trade lending, asset management, and private banking for UK-based clients.

Frequently Asked Questions

What was Zempler’s previous valuation?

Zempler previously had a valuation of £80 million in its 2020 fundraising round.

Who has acquired Zempler Bank?

Zempler Bank has been acquired by Access Bank UK.

What is Access Bank UK’s primary focus?

Access Bank UK specializes in trade lending, asset management, and private banking for UK-based clients.

How might this acquisition reshape the competitive landscape for small business lending in the UK?

Zempler Bank Valuation Slashed in Nigeria’s Access Bank Takeover | City A.M.