The acquisition of the specialist financial services provider to the franchising industry will boost Hitachi’s lending base to SMEs and franchisees.

The transaction is set to bring considerable senior consultancy experience to the group and will help to build a profitable portfolio within an underserved market.

Hitachi also hopes the acquisition will diversify its offering by utilising Franchise Finance’s expertise in business planning and training within the SME marketplace to create a new product offering.

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Franchise Finance helps train SMEs through its business training academy and operates with more than 140 franchisors and their franchisees, with particular strengths in the hotel, leisure, business services, personal services and transport sectors. 

Over the past five years, the company has completed more than 700 deals, worth over £32m.

“This acquisition enables us to grow and diversify our business further, reaching new customers within a franchise market that is consistently providing growth opportunities,” said Robert Gordon, CEO at Hitachi Capital UK (pictured above).

“We’re excited to bring the team into the Hitachi Capital UK group and use their expertise to accelerate our growth within the SME market.”

Stuart Walsh, managing director at Franchise Finance, added: “This deal will enable Franchise Finance to grow the reach and value of the fantastic expertise we have in the franchise market, providing Hitachi Capital UK’s current and prospective customers with specialist knowledge and funding that could prove crucial to their business or franchise success.”