Brisbane-based regional lender Bank of Queensland Limited (ASX:BOQ) has inked a $40 million deal to buy Virgin Money Australia, the Australian retail financial services arm of the Virgin Group.
Bank of Queensland says the acquisition will expand its distribution footprint into currently untapped and complementary customer and market segments.
The transaction is expected to be finalised by the end of April 2013 with the purchase price including $30 million in Bank of Queensland shares.
The deal also includes an agreement which will allow Bank of Queensland to use the Virgin Money Australia brand in Australia for up to 40 years in return for an ongoing royalty.
Virigin’s founder Sir Richard Branson says Australia is one of Virigin’s most important markets and he is excited by the partnership with Bank of Queensland.
Bank of Queensland swung to a net loss of $17.1 million in the 2012 financial year.
