BOQ To Acquire CIT Vendor Finance, Australia
April 26, 2010 04:33 PM Eastern Daylight Time
BRISBANE & NEW YORK--(EON: Enhanced Online News)--Bank of Queensland Limited (BOQ) (ASX:
BOQ), a leading Australian financial institution, and CIT Group Inc (“CIT”) (NYSE: CIT), a leading provider of
financing to small businesses and middle market companies, today signed a purchase agreement under which BOQ
will acquire Sydney-based CIT Group (Australia) Limited and CIT Group (New Zealand) Limited (“CIT ANZ”).
BOQ will acquire the CIT ANZ vendor equipment finance business which operates in the IT and office market as
well as the motorcycle and power equipment market providing finance to customers of a number of well known
vendors. The transaction is expected to close in the second quarter of the 2010 calendar year. As part of the
transaction, CIT ANZ intends to repay its outstanding fixed and floating rate notes (ISIN: AU300CGAL010 and
BOQ currently has a successful equipment finance book of approximately AUD $3.4 billion (US$3.2bn) and the
acquisition of CIT ANZ represents around 15% of this book. At 31 December 2009, CIT Group (Australia) had
AUD $525 million (US$485m) in assets and approximately 125 employees.
BOQ Managing Director David Liddy said, “This purchase provides BOQ with access to a strategic specialised
market and an ideal growth platform from which to grow new vendor relationships. We see significant growth in the
vendor finance market and this acquisition provides an ideal growth platform for BOQ. The CIT ANZ business has
a reputable track record in the domestic market and will complement BOQ’s current core competencies in the
equipment finance market.
“The business fits in with our focus on gaining greater market share in the SME segment and augments our existing
equipment finance capabilities,” Mr Liddy continued. “We currently have a strong presence in both the direct channel
(our branch network) and the broker network, and this purchase will round o