With 25 million customers, this acquisition will make GRUPOSURA the leading Latin American provider of mandatory pension funds, with a transaction value of EUR 2,615 million (USD 3,763 million) reflecting 1.8x book value, according to a press release. Excluding the benefit of any new cross-selling, the acquisition is expected to result in a 14.9x multiple of estimated 2012 earnings.
The agreement reflects the largest acquisition ever by a Colombian company, as well as the largest ever cross-border acquisition within the Latin American region. GRUPOSURA will maintain the acquired companies’ current investment strategy, and adds value to its portfolio with this transaction, almost doubling its investments’ anticipated dividends over the next few years.
“The similarities between the ING business model and the pension operations of GRUPOSURA create an opportunity to increase the value of services for our clients,” said David Bojanini, CEO of GRUPOSURA.
Grupo de Inversiones Suramericana is a regional Latin American company listed in the Colombian Stock Market and registered in the ADR- Level 1 program in the United States and in Latibex, the Latin American securities market in the Madrid Stock Market.
The acquired companies currently serve more than 10 million clients, hold more than USD 70 billion in assets under management, and employ nearly 7,000 employees in those five countries. They are expected to be integrated into Grupo de Inversiones Suramericana's portfolio in 2012 to add an expected USD 172 million in dividends.
The transaction will be subject to the review and approval of the relevant regulatory entities in each country, and is expected to be finalized over the next few months.
"This acquisition expands GRUPOSURA's presence in the region and continues our growth and internationalization strategy. ING's operating strength and experience will complement our existing platform and will drive value for our current and future investors," Bojanin stated.