Swiss consumer finance company Cembra Money Bank has agreed to acquire a 100% stake in local peer cashgate for CHF277m.

cashgate is the consumer financing arm of Aduno.

The deal raises Cembra’s personal loans and auto leases and loans portfolio by nearly CHF1.4bn to around CHF6.2bn.

Under the agreement, Cembra will completely repay cashgate’s existing borrowing.

Robert Oudmayer, Cembra CEO said: “Thanks to this acquisition we are further expanding our market position in the Swiss consumer finance space and growing as an independent provider of auto leases and loans.

“We also look forward to continue digitising our core business together with the experienced team at cashgate.”

Cembra intends to utilise the IT platform of cashgate and retain the cashgate brand in the online segment.

As part of the deal, cashgate staff will move to Cembra.

Aduno Group chairman of the board of directors Pascal Niquille called the deal a “win-win situation”.

Niquille noted: “Both companies are correspondingly familiar with Swiss circumstances and uphold the cultural values of our country.

“The agreement that has now been signed enables the Aduno Group to continue its focused strategy in a systematic manner.”

The deal is anticipated to be wrapped up in the third quarter of this year.