This press release is not something we would normally cover in FAN but we found it interesting because it will impact some companies that offer novated leasing with finance from Westpac. Novated Leasing customers probably won’t even notice that the financier has changed, though the back office people processing paperwork will.
Angle Finance, a recognised provider of financing solutions in Australia, announced that it will acquire the Auto Finance business of Westpac Group (“Westpac”). Angle Finance is a portfolio company of Cerberus Capital Management, L.P. (“Cerberus”), a global leader in alternative investing with USD$55 billion in assets under management and extensive experience in the financial services sector.
The Auto Finance business is a leading independent auto financer in Australia and is expected to write nearly A$4 billion of consumer and commercial loans for full year 2020. As part of the transaction, Westpac will transfer over 100 auto dealer and introducer agreements covering 1,200 dealerships nationally together with approximately A$1 billion of wholesale dealer loans as well as strategic alliance agreements with global vehicle manufacturers and Australia’s largest salary packaging firms. More than 500 professionals are expected to join Angle Finance in the coming months, including over 200 Westpac employees, to lead the auto financing platform, which will operate as “Angle Auto Finance”.
“The core of the Auto Finance business is partnerships,” said Bernie Campbell, Chairman of Angle Finance. “We will seek to help our partners’ businesses grow and succeed through significant investments in technology, streamlined processes, and initiatives aimed at elevating customer experiences. With the backing of Cerberus, we are excited to build on Auto Finance’s established platform under the Angle Auto Finance banner.”
In the initial stages, Angle Auto Finance will focus on supporting existing dealers, auto manufacturers, and novated lease partners as well as winning new business through modern technology, streamlined policies, and improving auto-decisioning. All of which is intended to make it easier for customers of dealers and other partners to purchase their vehicle using Angle Auto Finance.
Michael Correa, Westpac Auto Finance Managing Director, said he was pleased with the announcement that would provide certainty for the industry. “Angle Auto Finance is committed to the auto finance industry and will provide the capability and strategic focus to grow and improve the business. I look forward to working with Angle Auto Finance to ensure a smooth transition for our important partners and customers.”
David McWilliam, Managing Director for Cerberus Australia Advisors, added: “Angle Auto Finance will be able to deepen relationships with dealers and other partners by providing leading solutions supported by technology and high-quality services. We look forward to bringing Cerberus’ expertise and resources to support Angle Auto Finance in becoming the auto financer of choice in Australia.”
The transaction is expected to be completed in the fourth quarter of 2021.