Nordea is to acquire the online banking arm of Norwegian insurer Gjensidige for EUR578 million in cash.
The acquisition will enhance Nordea’s position as the second largest bank in Norway and adds 176k customers with €4,840 million customer assets. The agreement will also see Nordea distribute Gjensidige’s insurance products to its own 900,000 customers in Norway.
“We are firmly convinced about the strategic importance of offering both insurance and financing products to our customers in Norway,” says Helge Leiro Baastad, CEO, Gjensidige. “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.”
The acquisition, which is is expected to close in the first quarter of 2019, will see Nordea welcome 170 employees from Gjensidige Bank to the group. Annualised cost synergies are estimated at €25 million by 2022.