ClearScore makes waves with its second major acquisition

In early January 2025, ClearScore, a well-known credit information group, announced its acquisition of Aro Finance, a Manchester-based credit marketplace that partners with notable retailers like Argos and Asda. This strategic move, confirmed by sources familiar with the dealings, marks ClearScore's second major acquisition, following its earlier purchase of Money Dashboard in 2022. The deal is aimed at diversifying ClearScore's revenue streams and enhancing its services for its nearly 24 million global users, especially within embedded finance and secured second charge lending. Justin Basini, CEO of ClearScore, expressed optimism regarding the growth potential in second charge mortgages, considering it a pivotal element for the company's debt consolidation efforts and overall growth trajectory. The terms of the acquisition remain undisclosed and are subject to approval by the City watchdog, which adds a layer of regulatory scrutiny to the transaction. Aro Finance employs around 90 individuals, contributing to a burgeoning sector that has seen increasing interest as more consumers seek diverse financial products tailored to their needs. This acquisition is reflective of ClearScore's aim to leverage Aro's technological capabilities, creating synergies that align with its existing data-driven strategies. By integrating Aro’s offerings, ClearScore hopes to open new distribution channels while reaching a broader user base through its retail partners. ClearScore itself has been on a growth path, highlighted by its substantial backing from major investment funds, although it narrowly avoided a high-profile acquisition by Experian in 2018 due to antitrust challenges. This context underlines the competitive landscape in which ClearScore operates and the strategic importance of Aro Finance's inclusion within its portfolio, potentially setting the stage for future innovations in the credit marketplace.