ClearScore, the credit information provider which came close to being swallowed up by FTSE-100 giant Experian seven years ago, is reaffirming its independent growth prospects with the purchase of a smaller UK fintech.
Sky News understands that ClearScore will announce on Tuesday that it has bought Aro Finance, a Manchester-based credit marketplace which counts Argos and Asda among its partners.
People close to the deal said it would add a fresh revenue stream to ClearScore’s business, which already serves nearly 24 million users globally.
The Aro Finance deal represents ClearScore’s second acquisition, following its 2022 purchase of Money Dashboard.
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The terms of the transaction, which is subject to approval by the City watchdog, were unclear on Monday, and ClearScore declined to disclose them.
Aro’s technology embeds its credit marketplace proposition within partners’ digital infrastructure.
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Other users of Aro’s products include Very Group, the online retailer which forms part of the Barclay family’s shrinking business empire.
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ClearScore – which is touted as a potential medium-term flotation candidate by bankers – launched a credit repayment service called Clearer last summer, which automatically repays credit card debts and other loans from consumers’ available funds.
“This acquisition allows us to continue our growth by expanding into two complementary areas as a credit broker, namely embedded finance and secured second charge lending,” Justin Basini, ClearScore’s chief executive, said.
“We see a significant growth opportunity in second charge mortgages, and this will be a critical part of our debt consolidation proposition and business growth going forward.
“The addition of Aro’s marketplace capabilities to the group perfectly aligns with our existing data-driven approach and will allow us to reach new users through retail channels.”
Aro Finance employs roughly 90 people.
ClearScore, which is backed by funds including QED, Invus Opps and Lead Edge Capital, was on the brink of being bought by Experian for £275m in 2018.
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The deal was abandoned for antitrust reasons several months later.
