TruFin (TRU ), a technology-focused holding company, announced this morning its subsidiary Satago has entered into a landmark 5-year commercial agreement with Lloyds Banking Group.
Under the agreement, Lloyds will license Satago's new software platform for use by its customers. Satago will receive a recurring fee for each Lloyds customer that uses the platform, plus one-off implementation fees. Satago expects the platform to be made available to Lloyds' customers in Q4 2022.
Additionally, TruFin today invested a further £2m in Satago, as was planned at the time of its recent fundraising in March. Also in March, Lloyds completed an investment of £5m of new equity capital into Satago at a pre-money valuation of £20m.
TruFin also said that it continues to trade in line with market expectations.
Sinead McHae, CEO of Satago, commented: "By working collaboratively with the Bank, together we will deliver a solution that democratises working capital solutions for SMEs all over the UK, regardless of size or sector."
Ben Stephhenson of Lloyds Bank commented: "By partnering with Satago, we are enhancing the choices and speed at which SMEs can access finance solutions which is fundamental to our purpose of helping Britain prosper."
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This contract is a landmark win for Satago. Together with its growing list of commercial partners, the agreement puts the company in an excellent position to continue the rollout of its platform to small and medium-sized businesses in the years ahead.
Today's agreement builds on a Letter of Intent that Satago signed in June, to enter into a three-way partnership with Sage and Lloyds. The partnership enabled Sage customers to access instant financing from Lloyds, using Satago's technology. Following its initial roll-out in the UK, Sage and Satago said they intend to deliver the solution globally.
Earlier this year, TruFin confirmed that it had raised £8m to fund the growth of its subsidiaries Satago and Playstack. Both companies have since made significant progress. As well as Satago's new partnership deals with Sage and Lloyds, Playstack secured publishing rights for three new games to be released within the next 12 months, in addition to acquiring Magic Fuel Games for US$3m in June. Oxygen Finance and Vertus Capital, TruFin's two other subsidiaries, are profitable as well.
Overall, TruFin has delivered for its shareholders so far this year. Shares of the company have defied the broader downturn in equities, remaining mostly flat in the last year and up 4.35% so far today on the news.
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