OSLO: Easybank ASA and BRAbank ASA adopted a joint merger plan with the intent to create a leading consumer and SME digital niche bank with a Nordic footprint.

The combination is intended to create significant value and benefits for both set of shareholders, from consolidating to one cost base and from generating revenue synergies from complementary distribution strengths.

Easybank will be the surviving entity and CEO Oddbjørn Berentsen will continue as CEO for thecombined bank, which will be named BRAbank and listed on Merkur Market.

The headquarter will be in Oslo, Norway. Easybank’s Chairman Svein Lindbak will be appointed Chairman for the combined bank, and BRAbank’s Chairman Viggo Leisner will be appointed Vice Chairman.

BRAbank’s shareholders will receive 0.076 shares in Easybank for each share in BRAbank,representing 50% of the total outstanding shares following the merger.

“We look forward to combining with BRAbank and creating a strong platform for continuing the growth in the Nordic consumer finance market and strengthening the distribution of our SME products. The banks have complementary products, market segments and geographical coverage. With this transaction we will utilize our scalable platform and increase our self-funding capability, to drive attractive return on equity and shareholder value,” says Oddbjørn Berentsen, CEO of Easybank.

“The combination of Easybank and BRAbank will create a strong and scalable player, which will give a solid basis for realising our ambitions more effectively. The market and regulatory trends in the Norwegian and Nordic consumer finance markets have increased the need for scale and strong capitalisation. This is probably the best strategic fit among the niche bank players” says Svein Lindbak and Viggo Leisner, respective Chairmen of Easybank and BRAbank.

Approval of the transaction from the Norwegian Financial Supervisory Authority is expected in September 2020, and subject to close of the statutory creditor notice period and all conditions being met, the transaction is expected to be completed by the end of September 2020.

Sparebank 1 Markets AS has acted as financial advisor and advokatfirmaet Schjødt as legal advisor in connection with the merger.

Easybank ASA is a digital niche bank focusing on consumer finance and diversifying into B2B following the acquisition of the fintech company Fundu ASA in 2019.

BRAbank ASA is a digital bank focused on consumer finance in the Nordics. BRAbank is a cloud-based bank with strong focus on customer experience and fintech solutions.