The Bank of Queensland has announced a $20 million deal to acquire Centrepoint Alliance’s Premium Funding business.
The bank said the acquisition was “a natural extension” to its finance business, and Bank of Queensland (BOQ) managing director and chief executive Jon Sutton said the move was part of the bank’s “strategy to grow specialist niches”.
“BOQ Finance has developed expertise in offering specialised financing solutions for the SME sector through proprietary and third party distribution channels,” he said.
“Premium Funding complements BOQ Finance’s existing product offering, providing customers with a valuable cash flow management tool for addressing their critical insurance needs.”
BOQ expect the transaction to be completed on 30 December 2016, with Centrepoint Alliance Premium Funding being rebranded to form a new division within BOQ Finance.
“Under BOQ’s ownership, the business will benefit from funding cost synergies, whilst also providing opportunities for product expansion,” Mr Sutton said.
