Nordea, a Nordic financial services group, has signed an agreement to acquire Norway-based online bank, Gjensidige Bank, in a deal valued at NOK5.5bn (€578m).
Nordea has also entered into a long-term strategic mutual distribution partnership with Gjensidige in Norway.
Gjensidige provides private individuals with a suite of digital banking services, mortgages, car financing, unsecured loans and savings and investments.
Nordea Norway branch manager Snorre Storset said: “This is a significant step for us and underlines our strategy and ambition to grow in the important Norwegian market. As the largest bank in the Nordics it is natural for us to partner up with the leading insurance company in Norway.”
The acquisition, which will add with 176k customers with €4.8bn customer assets, is said to enhance the Nordic financial services group’s position as the second largest bank in Norway.
As part of the deal, around 170 employees from Gjensidige Bank will join Nordea.
Nordea said it expected to deliver annualised cost synergies of around €25m from the combined business cost base by 2022 and will have a positive impact on its earnings per share from the first year.
Subject to regulatory and other approvals, the deal is expected to be completed in the first quarter of this year.
Gjensidige CEO Helge Leiro Baastad said: “Our partnership agreement with Nordea will enable Gjensidige to offer a wider range of financing products to both private and commercial customers.
“The agreement will also provide the opportunity to expand our customer reach through one of the leading Nordic banks with digitalisation and innovation high on the agenda.”
Nordea is a full-service universal bank with a total operating income of €581.6bn in the last year.
Claimed to be the third largest corporation in the Nordic region, Nordea operates in 17 countries, including Denmark, Finland, Norway and Sweden.