Shawbrook Group has agreed to acquire specialist lender, ThinCats Group, for an undisclosed sum.

The firm said that the acquisition represents a strategic investment in accelerating the growth of its existing presence in the specialist SME lending market.

Shawbrook stated that ThinCats has an "established market position, proven origination capabilities and a technology-enabled business model" that strategically aligns with the group. The firm added that ThinCats’ streamlined tech-stack would complement its technology infrastructure and platform.

On completion of the deal, which is expected later this year, the ThinCats brand will operate as part of Shawbrook’s portfolio. The acquisition is also set to include a projected loan book of £700m with corresponding risk weighed assets of approximately £600m.

The SME segment of Shawbrook’s lending business accounted for approximately 21% of the group’s total loan book as of 30 June, and reported increased levels of activity across its markets, with both new lending and pipeline volumes exceeding those in the first half of 2024.

Chief executive officer at Shawbrook, Marcelino Castrillo, said: "ThinCats' approach is aligned to our own strategy of leveraging technology, credit excellence and an entrepreneurial culture to deliver a premium proposition to established UK SMEs.

"This acquisition will serve to further scale-up and deepen our presence in the very large and growing SME market. As part of the Shawbrook Group, the ThinCats proposition will benefit from our platform, including distribution channels, investment and funding structure, which will allow us to scale the brand more efficiently and serve even more UK SMEs with highly tailored funding solutions."

CEO at ThinCats, Amany Attia, added: "Becoming part of Shawbrook represents an exciting step for ThinCats and a strong endorsement of our model, supporting established and growth-focused SMEs.

"Underpinned by the significant technology, data and capital resources of the wider Shawbrook Group, ThinCats will continue to offer the high levels of coverage, innovation, service, and ongoing borrower relationships that business owners, professional advisers and financial sponsors have come to expect."

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