SG Fleet, a specialist provider of fleet management and novated leasing, expects to receive regulatory approval in August to allow it to complete the purchase of Leaseplan Australia and New Zealand by 1st September 2021.
In their FY21 investor results presentation they announced that the integration discussions were advanced and FAN has learnt that teams from both companies have been comparing notes to work through the opportunities and synergies.
Once the acquisition is complete, SG Fleet will become the local fleet management gorilla with an estimated 250,000 assets under management which will be double the size of their competitor. This scale will put them on the map globally and SG Fleet expect the alliance with Leaseplan Corporation to be one of the benefits.
Scale will provide efficiencies though shareholders will benefit with more reoccurring revenue and a better mix of customers and products.
The blending of two cultures is a challenge in any acquisition. SG Fleet believes there is a strong cultural alignment across the workforce and plan to hold onto staff with relevant experience and expertise from both organisations.
“This will be a truly transformational moment for us and everyone on the combined team is very excited to start delivering on the benefits the acquisition will create. Combined with the excellent progress we have achieved across the Group during the financial year, and the rapid evolution of our products and services offering, it is a very exciting time for both businesses to come together and the future holds great promise for the combined entity,” said SG Fleet’s Chief Executive Officer, Robbie Blau, in the FY21 results announcement.
Suppliers to the fleet industry are anticipating some changes once SG Fleet take over the management of Leaseplan but until all the senior positions are confirmed, it’s hard to predict what will change.