James van den Bergh of Trufin explains the significance of Satago’s agreement with Lloyds Bank

James van den Bergh, Chief Executive Officer of Trufin #TRU explains the significance of Satago’s commercial agreement with Lloyds Bank and talks about progress within other parts of the business.

Highlights

TruFin is pleased to announce that following the conclusion of the commercial pilot first announced on 11 December 2020, and a competitive tender process, Lloyds Bank has confirmed its intention to enter into a commercial agreement to license Satago's software platform for its Single Invoice Finance and whole of book Invoice Factoring customers. Satago and Lloyds Bank have signed a letter of intent and are working towards finalising a commercial agreement in the coming months. 

Satago's platform will introduce a new digitised proposition designed to help the Bank further support UK businesses. Satago expects to be paid a recurring fee for each customer of the Bank which utilises Satago's platform, as well as one-off implementation fees, with the final terms of this landmark agreement subject to commercial negotiation.

TruFin is also pleased to announce that, ahead of signing the commercial agreement, Lloyds Banking Group has today completed an investment of £5 million of new equity capital in Satago, at a pre-money valuation of £20 million. All parties believe that the commercial agreement will be transformational for Satago and has the potential to deliver significant equity value uplift for Satago.

TruFin has agreed to vary the terms of an existing £3 million loan to Satago so that it is convertible into equity capital in Satago at the same valuation as the LBG investment or, if a further funding round takes place, the valuation implied by the funding round. Assuming conversion based on the £20 million valuation (and assuming LBG does not subscribe for its pro rata entitlement to shares), TruFin would hold approximately 68% of Satago (on a fully diluted basis).

In addition, the Company is delighted to announce Ben Stephenson will be appointed to the Board of Satago. Ben is Managing Director and Head of Specialist Client Solutions at Lloyds Bank Commercial Banking and is responsible for the teams who provide SMEs with Invoice Finance, Trade, Payments, Asset Finance and Merchant Services solutions.  He sits on the Executive Committee of the LBG's SME and Mid Corporates Business and is a member of the UK Finance IF&ABL Product Board.

As Satago rolls out its best-in-class platform to a growing pipeline of leading finance providers, the Board believes there are multiple value accretive developments to follow.