Lloyds Banking Group has reportedly signed a £120 million deal to acquire UK digital wallet provider Curve.
Sky News has learned that Curve notified its investors this week about a share sale and purchase agreement with Lloyds Banking Group. The sale has been controversial, with shareholders expressing outrage over the discounted valuation placed on the firm.
The £120 million sale price accounts for only about half of the total funding raised by Curve since its inception a decade ago, falling far short of the $50-$60 billion valuation projected by management during the fintech boom.
IDC Ventures, which owns a 12% stake in Curve, has been actively opposing the deal since news of a potential sale emerged. Recent efforts by IDC to remove Lord Fink, the chair of Curve, and founder and CEO Shachar Bialick from their director positions were voted down by shareholders.
IDC continues to stand firmly against the sale, citing concerns over a lack of transparency regarding the deal structure and the distribution of proceeds to shareholders. “IDC does not intend to support the proposed sale and does not believe that it can be implemented without its support,” the firm stated.
Bialick has previously acknowledged his disappointment with the sale price and warned that the company could run out of funds this year if the sale to Lloyds does not proceed.