Time Finance has agreed a recommended cash acquisition by Bentley Park, the parent company of Ultimate Finance, valuing the AIM-listed specialist lender at approximately £55.1m.

Under the deal, Time Finance shareholders will receive 59.1 pence in cash per share, representing a 12.6% premium to the 52.5 pence closing price on 14 August and premiums of 23.5% and 27.5% to the three-month and six-month volume weighted average prices respectively.

Time Finance shares rose around 8.5% to 57 pence-57.2 pence following the announcement, remaining below the offer price as investors factored in completion and regulatory risks.

The transaction will combine Time Finance's approximately £218m net loan book with Ultimate Finance's £430m loan book, creating a specialist UK SME lender with a combined loan book of nearly £650m.

Bentley Park said the enlarged group would benefit from greater scale, broader product capabilities, cross-selling opportunities and more diversified distribution channels, while accelerating loan book growth, profitability and market presence.

Time Finance has delivered 20 consecutive quarters of loan book growth and had revenues of £37.1m and profit before tax of £7.9m in the year ended May 2025.

Its board said the offer provided a compelling opportunity to realise the company's strategic potential outside the constraints of the public markets while giving shareholders an opportunity to crystallise value at a significant premium.

The Time Finance directors unanimously recommended the transaction, with shareholders holding 47.36% of the company's shares already providing irrevocable undertakings to support the deal.

Josh Levy, CEO of Bentley Park and Ultimate Finance, said: "This acquisition is an exciting opportunity to bring together two strong specialist lenders with complementary capabilities, shared values and a common focus on supporting UK SMEs. We believe Time Finance is a strong strategic fit for Ultimate Finance, combining a relationship-led approach, talented people and deep expertise, while creating opportunities to build on innovation and development using a genuine 'best of both' approach.

"With an unaudited net loan book of £430m at the end of June 2026, we are entering this next chapter from a position of strength. This acquisition would create a larger, more scalable specialist lending platform with broader capabilities, greater resources and the ability to support more businesses across a wider range of funding needs."

Ed Rimmer, CEO of Time Finance, added: "The Time Finance Board has spent a great deal of time considering the offer from Ultimate Finance. The Time Finance Board believes there is a strong strategic fit between the two businesses... we look to the future with a considerable amount of optimism and excitement."

The acquisition is expected to complete in the fourth quarter of 2026, subject to shareholder approval, court sanction and FCA approval relating to changes in control of certain regulated Time Finance entities.

---