The board of directors of Finland-based Alisa Bank and the shareholders of PURO Finance have agreed on the combination of the companies through a share exchange. As a result of the combination of Alisa Bank and PURO Finance, a forerunner in digital banking and finance services for SMEs emerges in the market.

The transaction is expected to generate significant short and medium-term synergies, improving especially Alisa Bank’s profitability and growth opportunities. The transaction will be carried out by way of a share exchange, following the completion of which, the current shareholders of PURO Finance will own approximately 40% and current shareholders of Alisa Bank approximately 60% of Alisa Bank’s shares. The combination is aimed to be completed during May 2024.

This deal is conditional upon, among other things, the approval of Alisa Bank’s extraordinary general meeting as well as other customary preconditions. Going forward The focus of Alisa Bank’s business strategy will primarily be digital banking and finance services for small and medium-sized enterprises (SMEs). The combination supports this strategic transition.

PURO Finance is a fintech company specialised in invoice financing, with a business model based on cutting-edge technology and services closely integrated with the systems of financial administration service providers and other partners. Together, they aim to offer SMEs flexible, customer-oriented digital banking services and efficient finance solutions. The merger is expected to generate short and medium-term synergies, improving profitability and growth for Alisa Bank.

The combination will enhance Alisa Bank's capital structure and shareholder value, while enabling PURO Finance to scale its technological expertise and offer a wider range of services to SMEs. Maximising synergies through technological innovation Both companies prioritise technology and digital service models for operational efficiency and scalability. PURO Finance's advanced technology facilitates automated finance processes, enabling cost-efficient invoice financing for smaller companies and real-time data utilisation for credit risk management.

The merger anticipates substantial synergies, driven by revenue and cost advantages. Revenue synergies stem from cross-selling opportunities and increased customer volume. Alisa Bank's services can expand to PURO Finance's customers, and PURO Finance can offer lower-cost financing, broadening its customer base.

Immediate financing synergies are projected from Alisa Bank's lower-cost financing replacing PURO Finance's debt, yielding substantial savings. Cost synergies will arise from eliminating overlapping costs, leveraging operational best practices, and enhancing credit risk management. These synergies are expected to fortify Alisa Bank's financial metrics, including increased earnings per share, enhanced return on equity, and improved cost-to-income ratio.

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