Australian asset management company Link Group has agreed to acquire Pepper European Servicing (PES), a loan servicing business, from Pepper Group for €165m.
Headquartered in London, PES offers end-to-end loan servicing and asset management services for both residential and commercial segments. The company is claimed to have strong foothold in the UK, Ireland, Spain, Greece and Cyprus.
The deal is subject to regulatory approvals and is expected to be closed in the second half of this year.
The acquisition could expand Link Group’s Banking and Credit Management (BCM) division in existing and new jurisdictions.
With nearly €40bn in assets under management, PES is supported by a team of 800.
Link Group stated that PES’ servicing platform with core business characteristics are aligned strongly with BCM’s focus on new lending services and bank outsourcing, along with performing and non-performing loan management.
The deal will not affect PES’ services being offered to residential or commercial customers and their terms, conditions and contract points will remain the same, Link Group said.
Combined company to have nearly €130bn in assets under management
Link Group Banking & Credit Management CEO Robbie Hughes said: “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. This is a very exciting opportunity for BCM, PES, our collective teams and clients.
“Together with PES, we will provide a best-in-class proposition to clients from our deep talent pool, from our enhanced infrastructure and through a diversified client base.”
Once the deal is completed, PES will be integrated with Link Group’s BCM business. The combined business will have nearly €130bn in assets under management, employing more than 1,800 people.
Pepper European Servicing CEO Fraser Gemmell said: “We’re delighted to have completed this deal, which reflects very positively on the quality of the PES business and our team.
“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.”
