The acquisition, which was originally announced on 2 September, will see the bank enter the UK SME asset finance market.
Five Arrows Leasing Group specialises in providing asset finance products through its subsidiary brands to UK SMEs including equipment, vehicle and construction equipment finance, while the lender also provides lease servicing.
After the announcement John Heron, managing director of Paragon Mortgages, said: “This is fantastic news for Paragon Bank and in turn, the wider group.
“The new business has a strong track record and good reputation in operating in specialist markets, which of course is a good fit with Paragon. In addition, the loan book has an excellent credit profile and provides us with a platform to grow in a new market.
“It is expected that the acquisition will also accelerate Paragon Bank’s business plan, allowing the Bank to achieve profit in 2016 and further enhance its contribution to the group’s ongoing success.”
