Link Group is set to acquire Pepper Group’s European loan servicing, asset management and advisory business for an upfront cash payment of €165 million.
In addition, the meeting of assets under management (AUM) thresholds and growth milestones could trigger additional consideration of €35 million.
Pepper European Servicing (PES) provides its end-to-end loan servicing and asset management across residential and commercial segments, with ‘strong market positions and longstanding customer relationships’ in the UK, Ireland, Spain, Greece, and Cyprus, Link Group noted.
According to Link Group, the acquisition will deliver immediate scale for Link Group’s banking and credit management (BCM) division in existing and new jurisdictions.
The transaction is expected to be completed by H2 2020, subject to regulatory approval, and once completed, PES will integrate with Link Group’s BCM business.
Combined, the businesses will have approximately €130 billion of AUM and employ over 1,800 people, Link Group revealed.
Robbie Hughes, CEO, banking and credit management, Link Group commented: “In 2019, we set our strategic vision to become the leading independent servicer in Europe with an expanding global footprint.”
“This transaction accelerates that vision and will see two high-quality businesses integrated to create a leading pan-European asset servicer and manager, with significant potential for growth in existing and new markets,” Hughes said.
Fraser Gemmell, CEO of Pepper European Servicing, added: “We believe it’s very good news for our clients and people as it will facilitate the ongoing growth of the business while also providing Link Group with the opportunity to accelerate its European growth plans through the creation of a leading pan-European multi-asset servicer, which will leverage the combined strengths, experience and capabilities of the Pepper and Link Group platforms to deliver market-leading services for investors and financial institutions from across the globe.”
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