Link Group buys European loan servicing business for €165m

Link Group buys European loan servicing business for €165m

Link Group, listed on the Australian Securities Exchange, has signed an agreement to acquire Pepper European Servicing (PES), the European loan servicing, asset management and advisory business from Pepper Group for €165 million (A$266 million).

PES provides 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.

Headquartered in London, PES has circa €40 billion of assets under management and an established team of approximately 880.

The acquisition is subject to regulatory approvals and is expected to be completed in the second half of 2020. Once completed, PES will integrate with Link Group’s Banking and Credit Management (BCM) business.

Combined, the businesses will have approximately €130 billion of Assets Under Management and employ over 1,800 people.

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“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 highquality 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,” said Robbie Hughes, CEO, Banking & Credit Management, Link Group.

“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,” said Fraser Gemmell, CEO of Pepper European Servicing.