ClearScore, the credit information provider that was nearly absorbed by FTSE-100 giant Experian seven years ago, is reaffirming its prospects for independent growth with the purchase of a smaller British fintech.
Sky News understands that ClearScore will announce on Tuesday the purchase of Aro Finance, a Manchester-based credit marketplace which counts Argos and Asda among its partners.
People close to the deal said it would add a new revenue stream to ClearScore’s business, which already serves nearly 24 million users worldwide.
The Aro Finance deal represents ClearScore’s second acquisition, following its 2022 purchase of Money Dashboard.
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Terms of the transaction, which is subject to approval by the city watchdog, were unclear Monday and ClearScore declined to disclose them.
Aro’s technology integrates its credit marketplace proposition into partners’ digital infrastructure.
Other users of Aro’s products include Very Group, the online retailer that is part of the Barclay family’s declining business empire.
ClearScore – which is touted as a potential mid-term IPO candidate by bankers – last summer launched a credit repayment service called Clearer, which automatically pays off credit card debt and other loans to from available consumer funds.
“This acquisition allows us to continue our growth by expanding into two complementary areas as a credit broker, namely embedded financing and second charge secured lending,” said Justin Basini, Managing Director of ClearScore.
“We see significant growth opportunity in second mortgages, and this will form a critical part of our debt consolidation proposition and future growth of our business.
“Adding Aro’s marketplace capabilities to the group aligns perfectly with our existing data-driven approach and will allow us to reach new users through retail channels.
Aro Finance employs around 90 people.
ClearScore, backed by funds including QED, Invus Opps and Lead Edge Capital, was close to being acquired by Experian for £275m in 2018.
The deal was abandoned for antitrust reasons several months later.