PCF Bank has agreed to acquire media equipment lessor Azule Finance for £5.6m (€6.3m), which will give it access to a previously untapped asset class and a post-Brexit foothold in Europe.

Founded in 2004, Azule focuses on broking and financing audiovisual equipment, and has partnered with manufacturers and distributors such as Midwich. Its £16m receivables portfolio covers “a niche class of business-critical assets with strong collateral characteristics and lending to prime credit grade customers”.

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Slough-headquartered Azule has subsidiaries in Germany and Ireland, with operations spanning most European markets. The subsidiaries are set to give PCF Bank – which has so far operated only in the British market – a precious foothold in the EU, at a time when UK-headquartered firms are seeking a base on the continent to hedge against a possible loss of “passporting” rights as a result of Brexit.

PCF, which is eyeing a £750m portfolio by 2022, said there was “potential of a European distribution channel for vendor relationships” as a result of the acquisition.

Azule reported revenues of £3.1m for the year ending June 30, along with a profit of £800,000. The lessor originated £54.3m of asset finance business during the year.

Scott Maybury, chief executive at PCF, said: “Our acquisition strategy is focused on the diversification of both our asset classes and routes to market. Azule ticks both boxes and is immediately earnings enhancing.

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“As part of PCF Bank, Azule will be able to access a lower cost of funds enhancing profitability, enabling faster growth and accelerating PCF’s achievement of portfolio growth targets.”

Peter Savage, chief executive of Azule, added: “The next phase of growth … will be business as usual, with enhanced capability and flexibility via access to PCF’s retail deposits.”

London Stock Exchange-listed PCF is hoping for the Financial Conduct Authority to clear the acquisition by its full-year trading updated later this month.