Nordea announced it is acquiring Postgirot Bank for SEK 4.1 billion (EUR
440 million). As a result, Nordea will expand its customer base in Sweden
through Postgirot Bank’s 1.3 million customers, who will be offered
Nordea’s full range of financial services. Postgirot Bank holds a
significant position in the Swedish payment market. During the year 2000
Postgirot Bank’s average
deposits totalled EUR 3.8 billion and average customer loans totalled
EUR 1.2 billion. Postgirot Bank’s total assets amounted to EUR 7.7 billion
at the end of 2000.
— Nordea acquires Postgirot Bank in Sweden and strengthens its
competitiveness in important growth areas, such as payments and cash management
— Nordea expands its customer base in Sweden through Postgirot Bank’s 1.3
million customers, who will be offered Nordea’s full range of financial
— Nordea’s and Postgirot Bank’s products and services complement each
other, thereby strengthening Nordea’s position in the Nordic region
— The customers of Nordea and Postgirot Bank will get improved payment
services and a very broad range of qualified banking services
— The purchase price amounts to SEK 4.1 billion (EUR 440 million)
Expanding in a growth area
The market for payments is rapidly growing and changing by means of
the introduction of new techniques and payment systems. Efficient cash
management solutions are becoming increasingly important to Nordea’s
customers. Postgirot Bank holds a significant position in the Swedish
payment market and through the acquisition Nordea will improve its
position. The acquisition has three main attractions:
— Strengthened competitiveness in domestic payments.
Postgirot Bank is an important supplier of high-quality
paper-based and electronic payment services in Sweden (see
enclosed facts). Postgirot Bank has successfully developed
a number of electronic services, the quality of which is
very high, even in an international context. The company’s
systems and customer relations with a large number of
Swedish companies are important for creating an efficient
payment system. Combining the competencies of Nordea’s
e-services in Solo and Postgirot Bank will create better,
faster and more efficient payment services for the
customers, especially in the cash management area.
— Increased business volumes. The acquisition provides
excellent opportunities for cross-selling to Postgirot
Bank’s 1.3 million customers, of whom approximately 70% is
not Nordea customers today. The customers will be offered
a broad range of high-quality financial products and
services, and this is expected to generate additional
business volume, for instance through increased loans and
deposits. During the year 2000 Postgirot Bank’s average
deposits totalled EUR 3.8 billion and average customer
loans totalled EUR 1.2 billion. Postgirot Bank’s total
assets amounted to EUR 7.7 billion at the end of 2000.
— Strengthened competitiveness in international payments.
Postgirot Bank has a well-developed system for
international payment transfers, for instance through its
cooperation with the postal giro systems in other European
countries. Together, Nordea and Postgirot Bank can offer
their customers additional channels for payments. As a
result of the acquisition, payments from Nordea’s
customers in the other Nordic countries to all major
companies in Sweden can be effected faster.
“The acquisition of Postgirot Bank is an excellent growth opportunity
that will further strengthen our position as the leading financial services
group in the Nordic and Baltic Sea area. Customers will get better and
faster service on payments. Furthermore, we ensure that Swedish customers
will continue to benefit from alternative solutions for their payments,”
says Thorleif Krarup, Group CEO of Nordea.
Postgirot Bank will form part of the largest Nordic financial
institution with significant resources for further development of products
“Postgirot Bank, Nordea and all our customers are all winners. I am
very pleased that it is Nordea that has chosen to acquire Postgirot Bank.
We complement each other well, and this will mean benefits for Postgirot
Bank’s and Nordea’s customers,” says Postgirot Bank’s CEO Per-Eric Skotthag.
The acquisition is made at a cash price of SEK 4.1 billion (EUR 440
million) plus the net profit generated from 1 January 2001 up until
completion of the transaction. The goodwill arising as a result of the
acquisition is estimated at approximately EUR 215 million, including
restructuring costs of some EUR 20 million, to be amortised over ten years.
The annual net synergies from the acquisition are estimated at EUR 20
million after three years. The cost synergies have been calculated at EUR
30 million. The revenue synergies, including both cross-selling gains and
potential revenue losses, are calculated to be negative based on a
conservative estimate. Already in the first year, the acquisition is
expected to have a positive impact on earnings per share, after goodwill
amortisation. The effect of the transaction on Nordea’s Tier 1 capital
ratio is marginal, some 0.2 percentage points.
The acquisition, which will formally be made by Nordbanken AB, is
subject to approval by the Swedish Financial Supervisory Authority and the
EU Commission. Closing is expected in 2-6 months, depending on necessary
Facts about Postgirot Bank
Postgirot Bank has conducted payment activities since 1925. Its
banking business started on March 1, 1994 in connection with the conversion
of Posten into a public limited company.
Services offered include domestic inpayment (collection) and domestic
outpayment products (invoice), cash pools for corporate cash management,
electronic invoicing and international payments. Postgirot Bank also offers
other products, such as card-based payments products, and has developed
several e-services such as ePostgiro, eFaktura and eKop.
Postgirot Bank provides basic banking services, including deposits
and overdrafts and short-term money market loans. Postgirot Bank has no
branches for teller services, but is offering this service through the
Postgirot Bank’s primary business is based in Stockholm. Furthermore,
production takes place in Tierp, Norrkoping and Malmo. Customer service and
call centre functions are in Eskilstuna. The sales staff are located in
around 20 cities in Sweden.
Postgirot Bank has 450,000 corporate customers and 850,000 personal