UK vehicle leasing firm Leasedrive is set to be acquired by Hg Capital for £120 million, according to a report by Sky News.

The company, which leases about 35,000 cars and vans to British companies, is not the only UK leasing company that has come up on the sales block. According to Sky News, Zenith, one of Leasedrive's competitors, has also been put up for sale.

According to the Sky News report, Leasedrive is being sold by LDC, the private equity house that is part of the taxpayer-backed Lloyds Banking Group.

This is not the first time Hg Capital has ventured into the vehicle market. The company sold Epyx, an automotive technology company, to U.S.-based Fleetcor last month, according to Sky News.