Argos store card-owner NewDay nears £1.7bn deal with KKR

The proprietor of Argos's store paper part is connected the brink of a woody with 1 of the world's largest backstage equity investors that volition worth it astatine astir £1.7bn.

Sky News has learnt that the owners of NewDay Group, which has millions of customers successful the UK, were connected Tuesday evening adjacent to signing an statement that volition spot KKR go a large stakeholder successful the company.

City sources said KKR was apt to get NewDay's existing loan-book arsenic good arsenic buying a involvement successful its lending level alongside existing shareholders Cinven and CVC Capital Partners.

An statement could beryllium announced arsenic aboriginal arsenic Wednesday, according to insiders.

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NewDay has user recognition links with immoderate of Britain's starring retailers, including John Lewis Partnership and AO, the online electrical goods site

It owns the Aqua, Fluid and Marbles recognition brands, arsenic good arsenic Bip - the UK's archetypal digital-only recognition "card".

The company's owners person been exploring an outright merchantability oregon a much structured transaction for months, drafting involvement from parties specified arsenic Pimco, the elephantine enslaved money manager.

NewDay took ownership of Argos's store paper concern past twelvemonth successful a £720m woody with J Sainsbury, the supermarket giant.

It is 1 of Britain's biggest privately held providers of user recognition services, with astir 4 cardinal customers.

Last year, it reported £213m of underlying pre-tax profit, with caller lawsuit acquisitions up 36%.

It besides launched a exertion and lending concern with Lloyds Banking Group, and launched the aviator of a exertion concern with Debenhams Group successful the last 4th of past year.

The institution is chaired by Sir Mike Rake, the erstwhile BT Group and Worldpay chairman.

Its main enforcement is John Hourican, the erstwhile Bank of Cyprus and Royal Bank of Scotland executive.

NewDay, KKR and CVC declined to comment.