LONDON (Reuters) – U.S. private equity company Apollo Global Management has ended talks with the administrators of British financing company Greensill after a JPMorgan investment in Greensill’s technology partner, two sources familiar with the talks said.
Greensill, which filed for insolvency earlier this week after losing the support of its main backers, employed around 1,000 people in the UK.
Apollo was negotiating a $60 million acquisition of Greensill’s operating assets via its insurance arm Athene, the company said in its insolvency filing in a UK court earlier this week.
However, after Taulia — a San Francisco-based financial technology company that had worked closely with Greensill — said on Wednesday it had secured more than $6 billion of funding from a consortium led by JPMorgan, the proposition became untenable, said one of the sources.
“As of today, it’s game over. There’s no more talks with the administrator at Greensill,” said the source.
Spokespeople for Apollo, Athene and Greensill declined to comment.
Taulia works with financial institutions to allow suppliers that use its platform to receive early payments on their delivered goods and services. It said the credit facility would provide its clients that formerly relied on Greensill funding continued access to liquidity.
The source said Apollo had hoped to use the Greensill platform to fund some of its former clients, but this was a less attractive proposition now.
(Reporting by Abhinav Ramnarayan)