Bendigo purchases cashflow finance company
(27 April 2005 – Australia) Bendigo Bank has acquired cashflow finance company Oxford Funding for A$14.3 million and could make additional performance related payments over the next two years.
Bendigo Bank managing director Rob Hunt said the purchase would broaden the bank’s ability to support the SME segment with a suite of invoice based cashflow finance solutions.
He said Oxford had an excellent range of off the shelf products that would be made available to customers almost immediately throughout Bendigo’s 300 branch network.
"Turnover for debtor financing and invoice discounting grew by almost 40 percent last year so this acquisition has the potential to add significantly to the profitability of Bendigo’s business banking arm," Hunt said.
"It is important that we can provide those business operators with the flexibility to grow."
He said Bendigo had invested heavily in business banking over the past five years.
"We are rapidly reaching the point where we can provide a complete range of services to SMEs and Oxford joining our Group will further improve our ability to support this vital sector," Hunt said.
The acquisition price for Oxford, which was founded by Peter Ford in 1994 and employs 40 staff in Melbourne, Sydney, Brisbane and Perth, was based on 10 times 2004/05 earnings.
Oxford’s existing business and staff will be retained and the business will be run on a stand-alone basis.
Bendigo said additional innovative invoice based cashflow finance products would be developed over time.
He said Oxford had an excellent range of off the shelf products that would be made available to customers almost immediately throughout Bendigo’s 300 branch network.
"Turnover for debtor financing and invoice discounting grew by almost 40 percent last year so this acquisition has the potential to add significantly to the profitability of Bendigo’s business banking arm," Hunt said.
"It is important that we can provide those business operators with the flexibility to grow."
He said Bendigo had invested heavily in business banking over the past five years.
"We are rapidly reaching the point where we can provide a complete range of services to SMEs and Oxford joining our Group will further improve our ability to support this vital sector," Hunt said.
The acquisition price for Oxford, which was founded by Peter Ford in 1994 and employs 40 staff in Melbourne, Sydney, Brisbane and Perth, was based on 10 times 2004/05 earnings.
Oxford’s existing business and staff will be retained and the business will be run on a stand-alone basis.
Bendigo said additional innovative invoice based cashflow finance products would be developed over time.
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