Finland-based banking group Nordea Bank announced on Thursday it has entered into an agreement with Société Générale to acquire all shares in SG Finans AS (SG Finans) and intends to combine the business with Nordea’s pan-Nordic finance company, Nordea Finance. The agreed purchase price for SG Finans amounts to €575 million, which reportedly values the company at a price-to-book multiple of 1.07x. Alongside the transaction, Nordea Finance and Société Générale Equipment Finance have entered into a commercial partnership agreement.
According to Nordea, SG Finans is a Norwegian domiciled subsidiary of Société Générale and provides equipment finance and factoring solutions. SG Finans has 360 employees and operates in Norway, Denmark, and Sweden.
“The acquisition of SG Finans fits well into Nordea’s priority to focus on core business in the Nordics. The acquisition supports Nordea’s new phase – to drive income growth initiatives, optimise operational efficiency and create great customer experiences – communicated at Nordea’s Capital Markets Day in October.”
While sharing details about the acquisition, Frank Vang-Jensen, President and Group CEO of Nordea, stated:
“We are happy to announce this transaction. SG Finans runs a successful business with very satisfied customers in three of our four home markets. This acquisition strengthens our ability to advice and help small and medium-sized corporates with their financial needs.”
Nordea went on to add that the acquisition of SG Finans is subject to customary regulatory approvals and is expected to close during the second half of 2020.