Barclays has announced that its wholly-owned US consumer banking subsidiary, Barclays Bank Delaware, is set to acquire Best Egg for USD 800 million.
At the time of writing, completing the transaction was still subject to required regulatory approvals and other conditions.
Why is Barclays acquiring Best Egg?
Best Egg’s offering
Based in the US, Best Egg is a direct-to-consumer personal loan origination platform, centring its efforts on prime borrowers and a track record of risk management. Since the start of its operations back in 2013, the company has witnessed consistent growth and, according to its data, facilitated over USD 40 billion in personal loans to over two million customers.
When it comes to 2025, Best Egg is projected to facilitate over USD 7 billion in personal loan originations through its platform, with the loans being funded via structures including securitisation programmes and forward flow arrangements offered by alternative asset managers. The company is generating fee-based capital-light income through its loan origination and servicing activities. Additionally, Best Egg services nearly USD 11 billion in personal loans.
Details on the transaction
After finalising the deal, Barclays plans to continue the aforementioned model and keep a small portion of Best Egg’s new lending flow on its balance sheet. The company’s solutions are set to complement USCB’s partnership-driven credit card business, which facilitates unsecured personal lending to customers through several existing co-brand card partner programmes. The deal is set to solidify USCB’s franchise by acquiring digital and risk capabilities in this segment of the US consumer finance market and delivering flexibility in the deployment of lending capacity and capital.
Furthermore, the sum paid for acquiring Best Egg represents a high single-digit Price/Earnings multiple. The deal, including the completion of synergies, is projected to generate a considerable return on investment for Barclays, comparable to its three highest-returning UK businesses. Also, the financial institution mentions that it is set to be accretive to USCB’s Return on Tangible Equity (RoTE) in 2027, assisting in the delivery of its stated mid-teens RoTE target post 2026, while also being accretive to its RoTE and Earnings Per Share in 2027.
Barclays expects that the transaction will close in the second quarter of 2026 and finalise the previously announced sale of Barclays’ American Airlines co-brand credit card receivables.
