BANK of Queensland Limited (BOQ) has continued its expansion after today acquiring CIT Vendor Finance.
The deal will give BOQ ownership of CIT Group Inc’s Australian and New Zealand businesses, with the transaction due for completion in the second quarter of the 2010 calendar year.
BOQ has not revealed the value of the purchase agreement, but CIT Group (Australia) has $525 million in assets while CIT Group (New Zealand) will make up 15 per cent of BOQ’s equipment finance book.
BOQ managing director David Liddy (pictured) says the acquisition fits with the company’s focus on gaining greater market share in SME lending.
“We see significant growth in the vendor finance market and this acquisition provides an ideal growth platform for BOQ,” he says.
“We currently have a strong presence in both the direct channel – our branch network - and the broker network, and this purchase will round out our offering with a strong vendor finance presence.
“We expect the acquisition to be earnings per share accretive immediately from completion. However, this transaction will not have a material impact on our FY10 results.”
While BOQ has been investing heavily in its brand lately, Liddy plans to operate CIT Group (New Zealand) as a stand-alone business.
BOQ bolstered its operations recently with the acquisition of Western Australia-based St Andrew’s insurance business from the Commonwealth Bank (CBA).
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