Pepper Money has exercised its call option, acquiring the remaining 35% stake in Stratton Finance, reaching full ownership of 100%.

The initial 65% purchase was completed on July 1, 2022, with an agreement for potential full acquisition between the first quarter of 2024 and the first quarter of 2026.

The final 35% is bought for a base price of $42 million, subject to adjustments, with Pepper Money choosing a cash settlement from its reserves.

The acquisition will be finalised by April 30 and strengthens Pepper Money's presence in the financial services sector, complementing its existing portfolio in residential home loans, asset finance, commercial real estate, and novated leases in Australia and New Zealand.