Cerved Group S.p.A., fully owned by Cerved Information Solutions S.p.A. has entered into a binding agreement with Banca Monte dei Paschi di Siena S.p.A. (“BMPS”) to develop a long-term industrial partnership to manage its non-performing loans (“NPLs”).
The agreement foresees the acquisition – via the subsidiary Cerved Credit Management S.p.A. (“CCM”) – of a 100% stake in a corporate entity (“Juliet”) that will manage a third of the non-performing loans which will be securitized together with 80% of new NPL inflows that will be generated over the next 10 years. The price for Juliet payable at closing stands at Euro 105 million, in line with multiples of recent comparable transactions. In addition to such price, the agreement envisages an earn-out up to a maximum amount of Euro 66 million, entirely subject to the potential overperformance until 2024 compared to the conditions upon which the price paid at closing is based.
Cerved Group, via CCM, is a leading independent player within the credit management sector and has NPL assets under management in excess of 13 billion on behalf of banks, finance companies and institutional investors. The transaction is in line with Cerved Group’s growth strategy as presented to the markets during the course of the Investor Day on 10 May 2016.
Completion of the transaction is expected during the first quarter of 2017 and is subject to the effective deconsolidation of BMPS’ non-performing loans, execution of the capital increase as planned by BMPS, and regulatory authorizations and other standard conditions for transactions of this nature.
Source: Cerved Press Release