US secured finance firm IDS is to acquire UK-based White Clarke Group from Five Arrows Principal Investments, creating a “secured finance technology powerhouse” operating on a global basis.

The acquisition is expected to close by the end of Q2 2021

The acquisition, terms of which have not been disclosed, is expected to close by the end of Q2 2021 and will – according to the firms – enable them to form a unified global source for automotive, equipment and working capital financing software solutions serving a $7Tn secured finance end market.

The combined company will serve more than 300 customers across North America, Europe and Asia Pacific and will be co-headquartered in Minneapolis in Minnesota, US, and Milton Keynes, UK. White Clarke Group, which originally invested in the business in 2016, will remain a shareholder.

The firms said the tie-up would make strategic sense for the secured finance market, bringing global scale.

Products will cover a range multiple market segments including automotive finance – retail, fleet and wholesale, supported by White Clarke’s CALMS (Customer Acquisition & Lifecycle Management System) product range. The combined business will also cover equipment and asset finance and working capital.

“Our industry is being disrupted by a global shift in consumption,” said Brendan Gleeson, Group CEO of White Clarke Group. “Consumers and businesses want utility and outcomes, not ownership. This has created an opportunity for financing firms to tap into emerging technologies including digital and AI to create new business models like subscription and car sharing.

“As these trends accelerate, these firms will need the support of a global technology vendor that can deliver innovation at scale. Combining our companies provides the ability to innovate at the pace of change while delivering exceptional value to our combined customer base.”