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LendingClub signs definitive agreement to acquire Radius Bank

San Francisco based Peer to Peer lending company LendingClub Corporation announced its plan to acquire Radius Bancorp, and its wholly-owned subsidiary Radius Bank in a cash and stock transaction valued at $185 million.

The company through the acquisition is planning to leverage the revenue opportunity of $4 trillion Americans who are being charged traditional fees by financial institutions. It is expecting to create a digitally native marketplace bank at scale with enhanced customer experience and enabling consumers to both pay less when borrowing and earn more when saving.

The combined company will provide a financial health platform which will engage customers with actionable solutions that will assist them in making better financial decisions. Personalised assistance will be provided for individual needs, help earn higher returns on their savings, reduce their debt faster, and provide an opportunity to invest in others

“This is a transformational transaction that allows us to reimagine banking in a way that is free from legacy practices and systems and where the success of LendingClub is aligned with the success of our customers. By combining with Radius, we will create a category-defining experience for our members that will dramatically enhance the resilience and earnings trajectory of our business,” said Scott Sanborn, CEO of LendingClub.

The FinTech has signed the definitive agreement with adjustments in the purchase price set forth. The transaction is subject to regulatory approval and other customary closing conditions and is expected to close in the coming months. LendingClub Board of Directors has adopted a Temporary Bank Charter Protection Agreement to facilitate compliance with federal banking regulations and prevent closing of the Radius acquisition being delayed or disrupted.

“LendingClub has always been a fintech innovator, and I look forward to leveraging the strengths of both of our talented teams as we usher in a new era in banking. We are excited for our employees to operate our virtual banking platform with more resources and for our clients to gain access to an industry-leading lending product. This is a perfect marriage, with LendingClub bringing the leading digital asset generation platform, and Radius contributing a leading online deposit gathering platform, to position the combined company for long-term success,” said Mike Butler, Radius’ President and CEO.

Founded in1987, Radius offers branchless digital banking platform that combines technology and checking and savings account features for consumers and small businesses. It has over $1.4 billion in diversified assets.

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