Atom Bank's £600m sale process reportedly close to collapse

Atom Bank, the Newcastle-based digital challenger and the UK's first app-based bank, is reportedly weighing whether to call off its sale after the process failed to attract bids at the desired price of £600m, according to the Financial Times.

The asking price. Atom's owners appointed investment bank Jefferies to run the sale and were seeking more than £600m — well above the roughly £350m valuation implied by a 2025 fundraising. Some industry executives had flagged the £600m target as ambitious from the outset.

The bidders. Private equity group Pollen Street CapitalDealroom has a profile for this one. Try Dealroom → tabled an offer below the asking price and was said not to be minded to improve it. UK mutuals Yorkshire Building SocietyDealroom has a profile for this one. Try Dealroom → and Leeds Building SocietyDealroom has a profile for this one. Try Dealroom → had also reportedly considered bids, but overall interest was described as tepid.

Strategic context. Atom had previously explored an initial public offering before pivoting toward a sale. The bank, which serves roughly 250,000 customers, counts Spanish banking group BBVADealroom has a profile for this one. Try Dealroom → and asset manager ToscafundDealroom has a profile for this one. Try Dealroom → among its backers.

Leadership at stake. Per the Financial Times, a collapse of the sale process could lead to the departure of chief executive Mark Mullen, who has led Atom for 12 years and oversaw the bank's high-profile switch to a four-day working week.

Read more: Financial Times · FinTech Futures · The Telegraph