Lloyds Finalizes Curve Acquisition as Shareholders Challenge Valuation Terms

Lloyds Banking Group has finalized a £120 million acquisition of Curve, a UK-based digital wallet provider, despite significant shareholder discontent over the valuation and governance issues surrounding the deal. The transaction, confirmed by Curve in a shareholder circular, marks one of the most contentious fintech acquisitions in the UK this year. While Lloyds views the purchase as a strategic move to bolster its digital payments capabilities, major investors in Curve, including IDC Ventures—the firm's largest external shareholder with a 12% stake—have criticized the terms as undervaluing the fintech and questioned the transparency of the process.

The £120 million price tag represents roughly half of the £250 million in funding Curve has raised since its inception, falling far short of the $50–$60 billion valuation once mooted during the fintech boom. IDC Ventures, which has retained the law firm Quinn Emanuel to advise on its position, issued a statement condemning the board's handling of the sale and warning that it does not intend to support the transaction. The firm also disputed Curve's claim that the deal is the "best available path forward," arguing that governance disputes and unresolved ownership questions could jeopardize the acquisition.

Lloyds, however, has framed the acquisition as a pragmatic response to evolving market dynamics. The bank aims to integrate Curve's multi-card aggregation technology and payment-routing capabilities into its mobile banking ecosystem, positioning itself to compete with Apple Pay and Google Pay as regulatory pressures mount on tech giants to open their payment systems. With the UK and EU pushing for greater competition in digital payments, Lloyds sees an opportunity to leverage Curve's infrastructure to accelerate its transition to a more integrated, customer-centric financial platform.

Curve's board defended the deal, stating that the valuation "falls short of the ambitions we all held for Curve" but is necessary to ensure the company's solvency. Founder and CEO Shachar Bialick previously acknowledged the price was disappointing but warned that without a sale, Curve would likely deplete its cash reserves this year. The fintech, which once aspired to become a European challenger to global payment leaders, now faces a reckoning amid rising customer acquisition costs, tighter funding conditions, and regulatory scrutiny.

The acquisition highlights a broader trend of consolidation in the fintech sector, where strategic buyers like major banks are capitalizing on lower valuations to acquire key technologies. For Lloyds, the move aligns with a sector-wide shift toward acquiring rather than building digital infrastructure, a strategy that could help the bank leapfrog legacy systems and fast-track its payments roadmap.

However, the path forward remains uncertain. IDC Ventures' legal resistance and procedural challenges could delay or complicate the deal, particularly if the firm argues it must approve the transaction. Curve's board maintains that the acquisition is critical to its survival, while IDC insists governance and valuation concerns have not been adequately addressed.

If completed, the deal would position Lloyds with a ready-made digital wallet platform, enhancing its ability to compete in an increasingly fragmented payments landscape. For Curve's investors, the battle over governance and value distribution underscores the growing pains of a sector transitioning from high-growth speculation to a more pragmatic, capital-efficient model.