Online banking challenger Tandem has signed an agreement to acquire the banking arm of luxury retailer Harrods.
The purchase, which is subject to regulatory approval, comes just months after Tandem saw its £29m fundraising plans shelved and it rebranded to Tandem Money.
The firm said in a statement that under the terms of the agreement, Tandem will acquire 100 per cent of Harrods Bank and benefit from around £80m of capital coming into the business.
“The financial terms have not been disclosed. On completion, the bank will operate under the Tandem brand,” it said.
The acquisition, it says, will accelerate its launch plans to offer savings accounts to its customers, subject to regulatory approval, before the end of the year. This was shelved after the cancellation of its funding rounds.
Ricky Knox,Tandem founder, said: “Tandem has been built from the ground-up with the help of over 11,000 co-founders, who have helped us shape products and services that really make a difference to their lives. This acquisition will allow us to scale the business and ensure we can introduce as many people as possible to a new way of banking.”