“the Banking sector is undergoing a structural shift on an unprecedented scale. Together, we get the size and position as required to take advantage of the growth and expansion possibilities that this creates in the market”, says Mikael Ericson, Intrum Justitia’s ceo.
Intrum Justitia and lindorff’s shareholders will own approximately 53 percent and 47 percent of the shares in the merged company. Nordic Capital, today, is the majority shareholder of Lindorff, will indirectly become the largest shareholder in the merged company with approximately 45.5 per cent of the shares.
the Merger is scheduled to generate cost synergies estimated at 0.8 billion dollars per year, “and, in addition, significant revenue synergies,” writes the company.
the Deal, which recommended unanimously by the boards of directors of Intrum Justitia and Lindorff, is expected to be completed in the second quarter of 2017.
“I am very pleased that we have agreed to implement this industrial real merger. The merged company has the potential to in the future to create substantial value for both its customers and shareholders to society at large”, says Lars Lundquist, chairman of the board of Intrum Justitia.
Lindorff was founded in 1898 and has its head office in Oslo. The company has 4.400 employees in 13 countries and its headquarters are located in Oslo. The last twelve months amounted to lindorff’s revenue to the equivalent of € 6.4 billion. As a comparison, Intrum revenue to 5.8 billion during the same period. Intrum Justitia has about 4,000 employees.
Unclear who will be the president
It is not yet clear who will be ceo of the merged company Intrum Justitia/Lindorff, but a ceo will be appointed “no later than in connection with a transaction”.
Until the closing of the transaction will Mikael Ericson will continue to be ceo for Intrum Justitia, and Klaus-Anders Nysteen will continue to be the president and Lindorff. Mikael Ericson will, however, be overall responsible for planning the merger between the two companies and will report to a Integrationskommitté consisting of board members from both Intrum Justitia as Lindorff.
“the Entire management team for the merged company will be presented after the transaction is completed and reflect the strengths and experience of both companies, as well as being based on an evaluation of the senior executives of both companies,” writes the company.
The merged company will have its legal headquarters in Stockholm, sweden, but continue to have significant operations and competence centers in Oslo and other places in Europe.
Decisions about how the business should be structured, where the various functions should be located and what the name and brand that the merged company should have taken after the closing of the transaction, it is called.
Synergiereffekter costs 1 billion to implement
The cost synergies of 0.8 billion per year as envisaged in the merger between Intrum Justitia and Lindorff will get the full effect for 3-4 years after the deal has been closed.
It is clear from the press release from the companies by reason of the transaction.
the Costs to implement the synergies are estimated to approximately sek 1 billion and is expected to occur during the two years following the transaction.
the Synergies to be realized through the “optimization of operations centers, merging of administrative functions and support functions, the harmonisation of IT systems, development and maintenance of the systems, and the economies of scale relating to the purchase,” according to the companies.
in Addition to the cost synergies will see the parties “significant revenue synergies”.
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