Commonwealth Bank of Australia (CBA) today announced it has entered into an agreement to merge Aussie Home Loans (Aussie) with Lendi, a leading online home loan platform.
The merger will bring together Aussie’s significant network, strong brand and deep experience in supporting customers with their property goals, with Lendi’s leading technology and platform.
The complementary capabilities of Aussie and Lendi are expected to support the growth of the existing businesses and to deliver a range of additional benefits over time for customers and brokers, including enhanced digital capabilities and improved operational efficiencies.
Upon completion, CBA will retain a 45% shareholding in the combined business, with existing Lendi shareholders holding the remaining 55% shareholding. CBA will also receive deferred consideration and a pre-completion dividend of $105 million in aggregate (subject to adjustments). The transaction is not expected to have a material financial impact on CBA’s capital position.
CBA Chief Executive Officer, Matt Comyn, said: “We believe the combined business will have a stronger platform to offer enhanced digital capabilities for Aussie brokers and a superior experience for customers."
Lendi Chief Executive Officer and co-founder, David Hyman, said: “The role of digital technology in strengthening customer outcomes, compliance and operational agility is only growing in importance and by coming together with a robust and trusted business like Aussie, we will be able to drive even stronger outcomes for more homeowners and brokers alike.”
Completion of the transaction is subject to ACCC approval and other conditions. Completion is expected to occur by mid calendar year 2021.