Login
ISCOVER
COG Financial Services has announced the acquisition of salary packaging business, Paywise, and the simultaneous partial divestment of its Fleet Network business.
COG is acquiring Paywise for $30 million through its novated leasing subsidiary business Fleet Network, while simultaneously divesting an 18 per cent interest in the consolidated Fleet Network business to the EML Group for $15 million, with the proceeds being applied to the acquisition of Paywise.
According to the group, the rationale for the simultaneous acquisition and partial divestment transaction is to allow it to expand its novated lease offering to salary packing while partnering with an established organisation that has been involved in the provision of services to employers and their staff for many decades.
COG has completed four acquisitions across the asset finance brokering and aggregation, insuring broking, and novated leasing sectors since January 2022.
The transactions are expected to take full effect as of 1 April 2023, with settlement set to occur on or before 6 April 2023.
COG chief executive Andrew Bennett commented on the acquisition: “The acquisition of Paywise, a high-quality group, makes a lot of strategic sense to COG as it complements our growing novated lease and salary packing services to our government and private sector customers around Australia and gives COG additional exposure to the rapidly growing electric vehicle sector.”
He added that EML Group’s acquisition of a stake in the FleetNetwork business will open a new market for COG’s financial services and will “specifically enable COG to participate in larger government tenders for novated leasing services”.
Chairman of EML, Paul Baker said: “We consider the novated leasing services provided by FleetNetwork/beCarWise to be a high-quality service for employees.
“With the addition of Paywise salary packing and systems expertise, we are excited about using our distribution to expand their footprint.”
Net assets rise
The financing broking and aggregation arm of COG saw “record volumes” in assets financed for the half-year ended 31 December 2022.
It reported its broking and aggregation businesses delivered a 9 per cent increase in net assets financed in 1H23 when compared to the previous corresponding period, which brought total volumes for the half to $3.4 billion.
Head of COG aggregation, Mark Rayson, said the financial results “reinforce the continuing appetite for asset finance” in spite of tightening supplies and a higher interest rate environment and demonstrate the resilience of the sector.
[RELATED: COG net assets up 9% in 1H23]
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
JOIN THE DISCUSSION