Lloyds clinches £120m deal for digital wallet provider Curve

Britain's biggest high street lender has struck a £120m deal to buy Curve, the digital wallet provider, despite recriminations from shareholders about the distribution of the sale proceeds.

Sky News has learnt Curve notified its investors this week that it had signed a share sale and purchase agreement with Lloyds Banking Group. An announcement is expected as early as next week.

Money blog: Apple launches £220 iPhone 'sock' In the circular to shareholders, Curve said: "We recognise that the value of this transaction falls short of the ambitions we all held for Curve, and we share the disappointment some of you may have in this outcome. "Yet, the board strongly believes this transaction represents the best available path forward for Curve's creditors and shareholders as a whole." Since the talks about a sale to Lloyds emerged in the summer, Sky News has reported the fury of some early Curve investors about the price and the proposed distribution of proceeds.

In a statement issued on Friday morning, IDC Ventures, its biggest external shareholder with a 12% stake, said it remained "deeply concerned about the conduct of Curve's management and board during the current sale process". "Issues regarding the company's governance and ownership are disputed, and IDC is reserving all legal rights pending further developments," it said.

"It is a matter of real surprise to shareholders that Lloyds Banking Group, a leading UK institution, would contemplate proceeding with a transaction that IDC believes in not in the best interests of the company or its shareholders. "As such, IDC does not intend to support the proposed sale and does not believe that it is capable of being implemented without its support.

"IDC expects the board and any prospective purchasers to act responsibly and transparently, and will take all necessary steps to protect shareholder interests if those obligations are ignored." Efforts to remove Lord Fink, the City grandee who chairs Curve, and Shachar Bialick, the fintech's founder and chief executive, as directors of the company were voted down at a shareholder meeting early last month. IDC Ventures, which has appointed the London law firm Quinn Emanuel to advise it on the situation, first invested in Curve six years ago and has participated in or led several funding rounds for the company.

Read more from Sky News:Starmer and Reeves in U-turn over income tax'Staggering' 20-year fall in domestic UK flights Mr Bialick has previously acknowledged that the sale price was disappointing, and warned that the company would probably run out of money this year unless a sale to Lloyds was agreed. In total, Curve is understood to have raised at least £250m in funding since it was established.

Lloyds hopes that buying Curve will give it an edge in the race to build smarter online payments systems amid growing pressure on Apple to open its payment services to rivals. Curve did not respond to an emailed request for comment on Friday..