Link Group sells its BCM arm for $48m

Oksana Patron

20 March 2023

Link Group has announced it has sold its banking and credit management business (BCM) for cash consideration of up to €30 million (approximately $48 million) to LC Financial Holdings Limited.

According to the announcement to the Australian Securities Exchange (ASX), Link will receive €20 million cash consideration plus:

1. Deferred cash consideration of €5 million payable within 12 months of completion
2. A cash earn out of €5 million subject to BCM meeting certain financial targets by the second anniversary of completion

The transaction is expected to complete in the second half of the calendar year 2023, subject to Financial Conduct Authority, Central Bank of Ireland and the Dutch Authority for the Financial Markets approval.

According to Link Group’s chief executive and managing director, Vivek Bhatia, the move was a part of the firm’s “simplification strategy”.

“We identified the BCM business and team as being both highly regarded in its sector and complementary to our existing group of companies under LCFH,” LCFH chief executive, Paul Burdell, said.

“We have the desire, skill and determination to help the BCM leadership team to create a best in class, global mortgage and loan servicer.

“BCM has an excellent roster of banking and investor clients in Ireland, UK, Italy and the Netherlands., and we are confident that they will continue to provide an outstanding service.”

Link Group also re-affirmed its FY23 guidance provided at its 1H FY23 results on 24 February with expectations of operating EBIT to be up 10%-12% on FY22.