Karla Barker 
Banking Giant Makes Digital Payments Move
Lloyds Banking Group has agreed to purchase digital wallet provider Curve in a deal valued at £120 million, which converts to about $139 million. The formal announcement is expected next week, according to people familiar with the matter who spoke with Sky News. This represents what could be the UK’s largest high street bank making its most substantial push into digital payments to date.
Curve informed its shareholders recently that it signed a share sale agreement with Lloyds. The timing seems critical – anonymous sources suggest the company, which serves over six million users, might run out of cash this year if it doesn’t secure a buyer. That’s a concerning position for a company that’s raised more than £250 million since its launch.
Shareholder Backlash and Valuation Concerns
But here’s where things get complicated. The acquisition has sparked significant resistance from some of Curve’s major shareholders who believe the valuation doesn’t reflect the platform’s true worth. Early September saw CEO Shachar Bialick acknowledge that Lloyds’ offer was lower than previous fundraising rounds, but he maintained that Curve needed to secure its future regardless.
The gap between the current deal value and previous investments has become a major point of contention. IDC Ventures, Curve’s largest external investor with a 12% stake, has publicly rejected the deal and is threatening legal action. They’ve expressed deep concerns about how Curve’s management and board handled the sale negotiations.
Governance Disputes and Legal Challenges
IDC Ventures issued a statement saying they’re “deeply worried” about governance issues and unresolved ownership questions at the time of the agreement. They argue the transaction isn’t in the company’s best interests and don’t intend to support the proposed sale. Their position is that the deal can’t proceed without their backing.
This isn’t the first governance clash either. Back in July, IDC Ventures attempted to remove Lord Stanley Fink, the former Conservative Party treasurer, from his position as chair of Curve. The board reinstated him just two days later. During an extraordinary general meeting in early October, opponents failed to remove both Fink and CEO Bialick through a shareholder vote.
Curve acknowledged the disappointment around valuation in its message to shareholders, admitting the offer fell short of expectations. However, the board maintains this represents the best available path forward for creditors and shareholders overall.
IDC Ventures, represented by London law firm Quinn Emanuel, has been involved with Curve for six years and participated in several major funding rounds. They’ve expressed concerns about the lack of transparency around the board’s handling of the sale process and Fink’s reappointment.
The situation creates an interesting dynamic – a traditional banking institution moving into digital payments while facing resistance from the very investors who helped build the company they’re acquiring. It makes you wonder how these governance disputes might affect the integration process if the deal does go through.