FTSE firm acquires Harrogate fintech group

Harrogate fintech group Nostrum has been acquired by FTSE-listed firm Equiniti.

The Equiniti Group, which has a market cap of more than £750m, has bought the Harrogate company which provides loan management software for banks, finance companies and retail brands.

Nostrum employs 85 people and in its most recent filed accounts for FY15, it generated revenues of £10.7m, up 22% year-on-year, and is profitable, generating a PBT margin of 13%. In 2015, the company was included in the Deloitte Fast 500 and Times Tech Track.

Equiniti said the acquisition would strengthen its position in the lending sector, building on the platforms of Pancredit and its loans, mortgage and insurance services platform Equiniti Gateway.

Chief executive of Nostrum Richard Carter will become managing director of the newly-formed Equinti Credit Services business.

Guy Wakeley, Equiniti’s chief executive, said: “We are delighted to announce the acquisition of Nostrum which consolidates Equiniti’s capabilities in the loan sector. The integration of Nostrum will provide greater depth, scale and capability in a dynamic growth market, whilst also providing the platform for a range of new products and services.

“The business is aligned with the group strategy of providing regulatory-driven, technology-enabled services, and will contribute to organic growth.”

Carter said: “Our acquisition by Equiniti and the launch of Equiniti Credit Services represents the next chapter in the development of our business. We are bringing together the best of Equiniti’s rich feature set and Nostrum’s agility. Our solutions and shared heritage will allow us to realise our combined strategic ambition.”