Solvar Ltd Expands into SME Finance with Strategic Acquisition

In a significant move to diversify its portfolio, Solvar Ltd, a leading provider of automotive finance, has acquired a 19.9% stake in Earlypay Limited. This strategic acquisition, announced on May 23, 2025, marks Solvar’s foray into the small and medium-sized enterprise (SME) finance market, aligning with its broader strategy to serve underserviced markets.

Strategic Expansion into SME Finance

Earlypay, listed on the ASX under the ticker EPY, specializes in providing working capital finance to Australian SMEs through its equipment finance and invoice finance products. The equipment finance solutions offered by Earlypay enable SMEs to acquire new equipment essential for business growth, while its invoice finance services help bridge the cash flow gap by facilitating early payment of unpaid invoices.

Solvar’s Chairman, Stuart Robertson, emphasized that this investment is consistent with the group’s strategy to provide funding solutions to underserviced markets. By acquiring a stake in Earlypay, Solvar gains exposure to the large commercial markets adjacent to its existing consumer finance operations.

Financial Overview and Market Position

Solvar Ltd, headquartered in Thomastown, operates in the consumer finance sector, focusing on automotive finance for new and used vehicles, as well as personal loans. The company is listed on the ASX All Markets stock exchange and has a market capitalization of approximately AUD 342.31 million. As of May 21, 2025, Solvar’s share price stood at AUD 1.69, with a 52-week high of AUD 1.81 and a low of AUD 0.925.

Buy-Back Activity

In addition to the acquisition, Solvar has been actively managing its share structure through a buy-back program. On May 22, 2025, the company announced a daily buy-back notification, purchasing 45,000 shares on the previous day, bringing the total number of shares bought back to 13,015,129 before that day.

Market Reaction and Outlook

The acquisition of Earlypay is expected to bolster Solvar’s position in the financial sector by expanding its service offerings and tapping into the lucrative SME finance market. This move is anticipated to enhance Solvar’s growth prospects and provide a competitive edge in the evolving financial landscape.

As Solvar continues to execute its strategic initiatives, investors and market analysts will closely monitor its performance and the integration of Earlypay’s services into its existing operations. The company’s forward-looking approach and commitment to serving underserviced markets position it well for sustained growth in the coming years.