Ferratum Oyj : Ferratum plans to acquire FCB Firmen-Credit Bank GmbH
Helsinki/Berlin, January 26, 2016 - Ferratum Oyj (ISIN: FI4000106299, WKN: A1W9NS) a pioneer in the field of financial technology and international provider of mobile consumer loans and small corporate loans, plans to acquire FCB Firmen-Credit Bank GmbH (FCB). The final transaction will take place after obtaining the approval of the European Central Bank (ECB). The ECB's approval is the only suspensive condition to the planned acquisition, and Ferratum Oyj's management expects this condition to be fulfilled during the second quarter of 2016. Following this acquisition, the Ferratum Group will own yet another EU credit institution besides Ferratum Bank p.l.c., which is based in Malta. FCB's initial line of business will be the offering of small unsecured loans over the Internet to business customers in Germany, following which the service will also be extended to customers in other European jurisdictions.
FCB, with its seat in Frankfurt am Main (Germany), is part of Avenue Capital Group (ACG) and has a German banking licence for deposit and credit business. After the acquisition Ferratum will shift the focus of FCB to the Groups's devision "Ferratum Business". As a result, FCB should become the central unit within the Ferratum Group for distributing small business loans. The maximum loan amount of this business line is currently EUR 50,000, with a maximum duration of 12 months. "Ferratum Business" was launched in 2015, and is currently active in three countries: Sweden, Finland and Lithuania. In the future FCB's activity within and from Germany should form the center of this division within the Ferratum Group. Ferratum Bank p.l.c. will continue to focus on its current lending business with private individual customers.
Dr. Clemens Krause, CFO of Ferratum Group, describes the significant importance of the planned acquisition: "The lean structure of FCB and the attractive purchase price will initially only have a small effect on the Group's revenues and earnings in 2016; already in 2017 we then expect a significantly positive profit contribution. Its location in Frankfurt and the German banking licence give the Group a sound regulatory framework in order to develop FCB in the mid-term as successful as Ferratum Bank p.l.c., with its current presence in nine European countries. Therefore, we consider the acquisition of FCB as an important strategic step in order to accelerate the successful development of Ferratum Group."
Jorma Jokela, CEO and founder of Ferratum Group, comments on the strategic importance of FCB's German headquarters: "The decision of Ferratum Group to choose a German credit institution as a legal entity in order to establish the hub of its new international lending activities 'Ferratum Business' accommodates the fact that Germany is the most important market within the European Union in terms of population and economic strength. The strength of the German SME market as an established and well-regulated financial industry, as well as Frankfurt as the seat of FCB are contributory factors in this decision."
About Ferratum Group:The Finnish Ferratum Group, a pioneer for mobile consumer loans in Europe, offers short-term consumer loans for private persons. Ferratum's customers can utilize digital media to apply for consumer credit in amounts varying between EUR 25 and EUR 3,000. Moreover, Ferratum offers successful small businesses installment loans with a term of six to twelve months. Managed by its founder Jorma Jokela, Ferratum has expanded rapidly since it was founded in 2005: Ferratum has 1.2 million active and former customers who have been granted one or more loans in the past and 3.5 million total user accounts in its database (as of 30 September 2015). Ferratum is represented in 23 markets. At the end of September 2015 Ferratum Group employed 501 persons compared with 383 persons at year-end 2014.
Contacts:Ferratum Group
Dr. Clemens Krause, CFO
T: +49 30 88715308
F: +49 30 88715309
M:
[email protected]Ferratum Group
Paul Wasastjerna
Head of Investor Relations
T: +358 40 7248247
F: +358 20 741 1614
M:
[email protected]cometis AG
Henryk Deter I Mariana Kuhn
T: +49 611 20 58 55-61
F: +49 611 20 58 55-66
M:
[email protected]