Barclays Bank Delaware has agreed to buy direct-to-consumer lending fintech Best Egg.
The U.S. unit of the British bank will pay $800 million for Best Egg in a deal expected to close in the second quarter.
Best Egg, formed in 2013, has facilitated more than $40 billion in personal loans to more than two million customers. The fintech is expected to facilitate more than $7 billion in personal loan originations this year, and it services about $11 billion in personal loans.
Barclays plans to retain a small portion of Best Egg’s new loan flow on its balance sheet.
The deal is expected to be accretive to Barclays Bank Delaware’s return on tangible equity in 2027.
The acquisition “represents a significant step forward in our strategy to grow and diversify our U.S. consumer banking business,” Denny Nealon, Barclays Bank Delaware’s CEO, said in a press release.
“As a leader in the personal loans market, Best Egg gives us the ability to reach more U.S. consumers through a proven platform that has been successful for over a decade,” Nealon added.