Funding Circle Holdings PLC (LSE:FCH) has sold its US business for £33 million but has not decided what to do with the proceeds.
The peer-to-peer lender will offload the unit to iBusiness Funding (IBF), a subsidiary of Ready Capital Corporation (NYSE:RC), that provides lending services for banks and other financiers,
IBF has agreed to acquire all loan portfolios, with the consideration including a £10 million gain, before transaction costs, Funding Circle said.
"The proceeds from the transaction will be reviewed in line with our capital allocation framework," the company said.
In March, CEO Lisa Jacobs announced her plan to sell the US arm to simplify the business and focus on the UK.
"Alongside the UK restructuring actions announced in May, we are continuing to execute against this plan with the sale of the US business to IBF," she said in today's statement.
She said the UK business is on track to be profitable in the second half of the year, in line with previous guidance, and over the medium term the board expects net income growth of 15-20% annually with pre-tax profit margins of at least 15%.