Under the terms of the deal, Citi bought the online banking company for GBP546 million, despite Prudential having valued Egg at GBP900 million last year, reported IFAonline. The acquisition is expected to be accretive in its first year.
In addition, Citi has appointed Egg CEO Ian Kerr to run Egg and Citi UK Consumer. The two companies combined have more than four million customers, a significant share of the UK credit card market, along with Egg’s strong online platform and Citi Consumer UK’s network of five retail banking and 49 consumer finance branches. A strategy is being formulated to create synergies between both businesses and maximize the potential for the key stakeholders.
George Awad, CEO of Citi’s global consumer group for Europe, the Middle East and Africa, said: The combined business will have great brands, great people, great technology and great customer service. This acquisition provides us with meaningful scale in consumer financial services in the UK, a key strategic market, and enables us to enhance the value proposition for customers and grow our business. Citi is also learning from Egg’s successful direct banking platform and customer service programs.
Citi has been engaged in rapidly expanding its business in the UK, and recently acquired Quilter, a wealth advisory firm in the UK. The acquisition of Egg is clearly in line with this growth strategy.
