Swiss payments services company Aduno has agreed to sell cashgate, its consumer financing business, to Cembra Money Bank for CHF277m (£222m).
cashgate, which specialises in credit and leasing, provides financing and security services to private customers and distribution partners. The company, which is the exclusive partner of Raiffeisen, Cantonal and certain regional banks, enables customers to conclude their loan agreement completely online.
On the other hand, Cembra Money Bank, which is headquartered in Zurich-Altstetten, is a provider of consumer credit products and services. The bank employs over 800 people in Switzerland.
The transaction is expected to help Cembra Money Bank to consolidate its place in the consumer leasing market while enabling it to expand its offering. Following the acquisition, cashgate brand will continue to remain in the online segment.
The Swiss bank also intends to fast track its digital transformation by leveraging the IT platform of cashgate.
Cembra Money Bank, as part of the acquisition of cashgate, will also be retaining the employees of the business and will fully repay its existing debt.
Cembra Money Bank CEO Robert Oudmayer said: “With the acquisition of cashgate we continue to implement our growth strategy. Thanks to this acquisition we are further expanding our market position in the Swiss consumer finance space and growing as an independent provider of auto leases and loans.
“We also look forward to continue digitising our core business together with the experienced team at cashgate.”
For Aduno, the transaction marks its next step in executing its strategy to expand and focus on its core business. Last year, the company acquired full ownership in Accarda, a Swiss specialist in customer cards.
Aduno Group board of directors chairman Pascal Niquille said: “The Aduno Group and Cembra Money Bank focus on the Swiss market. Both companies are correspondingly familiar with Swiss circumstances and uphold the cultural values of our country.
“The agreement that has now been signed enables the Aduno Group to continue its focused strategy in a systematic manner.”
The transaction, which is subject to customary conditions, is expected to be closed in the third quarter of 2019.