TLT completes acquisition of UK bank for US-based global digital home ownership platform

TLT has advised US-based Better – the global digital home ownership platform - on its acquisition of Birmingham Bank, showcasing the firm’s strengths in corporate acquisitions, particularly in the financial services and the UK banking sectors. Birmingham Bank, established in 1955, has a historic customer focus primarily in the Midlands.

TLT had previously advised Better in 2022 in relation to its purchase of a minority interest in Birmingham Bank. Following approval by the Prudential Regulation Authority, Better has now purchased all remaining shares of Birmingham Bank.

The acquisition will support Better’s strategic growth plans, including its ambitions to expand its footprint in the UK market. Better will grow its residential mortgage lending across the UK over the coming years through Birmingham Bank funding Better Home Ownership loans using forward flow agreements funded by deposit growth.

It’s anticipated the acquisition will create 40 jobs within the Bank in the next three years across business development, savings management, marketing, operations, finance, risk management and IT.

TLT corporate team supported on all aspects of the acquisition, including a complex transaction framework. The deal was led by corporate partner Philip Barratt and involved cross-sector expertise supported by, amongst others, Nicole Spurling, Irina Angliss and Joshua Swain (corporate), Sarah Simpson (financial services), Ben Kumordzie (banking), Adam Pickavant (commercial).

Philip said: “It was a pleasure to support the team at Better on their acquisition of Birmingham Bank. It’s promising to see there is an appetite to invest into our banking sector, demonstrating that there are still M&A opportunities in the financial services sector, despite what might have been challenging economic circumstances in the last couple of months.

“Bank acquisitions are rare in the UK and this transaction required expert legal knowledge not just of the sector but also of the corporate landscape surrounding mergers and acquisitions. We’re delighted to have supported Better’s expansion into the UK.”

Duncan Pownall, senior director UK capital markets commented: “TLT was instrumental in helping us successfully complete on the acquisition of Birmingham Bank. Having worked with them before, we knew that Phil and the team would have the know-how and sector expertise to get this deal over the line. We look forward to further developing our range of financial services in the UK and make homeownership cheaper, faster and easier for all.”