Automotive finance group Solvar Limited has acquired a 19.9% stake in Earlypay.
Both are ASX listed. Solvar was formerly known as Money3.
Earlypay is a provider of working capital finance to Australian SMEs via equipment finance and invoice finance products.
Solvar chairman Stuart Robertson said “Solvar’s strategy is to provide funding solutions to underserviced markets. The investment in Earlypay is consistent with the Group’s strategy, and provides the Group exposure to adjacent underserviced, large commercial markets.”
This may be the prelude to a takeover bid. Solvar has a market capitalisation of $340 million and Earlypay a market cap of $56 million.
Solvar has receivables of $867 million and Earlypay $241 million.