Regional lender Bank of Queensland Ltd
(ASX:BOQ) has agreed to acquire US based CIT Group’s Australian and New Zealand businesses.
The bank will acquire CIT Group Australia and CIT Group New Zealand, known as CIT ANZ, with the transaction expected to be finalised in the second quarter of the 2010 calendar year.
CIT ANZ provides vendor equipment finance in the IT, office, motorcycle and power equipment markets.
Bank of Queensland says the acquisition of CIT ANZ represents around 15% of the company’s $3.4 billion equipment finance book.
As at December 31, 2009 CIT Group Australia had $525 million in assets and around 125 employees.
Bank of QLD Managing director, David Liddy says the bank sees significant growth in the vendor finance market and this acquisition provides an ideal growth platform for the company.
Mr Liddy says CIT ANZ will continue to operate as a stand-alone business under the ownership of Bank of Queensland.
For the 12 months to August 30, 2009 Bank of Queensland reported a profit of $141.1 million.
