BAWAG, an Austrian bank majority controlled by Cerberus Capital Management, has agreed to acquire German lender Suedwestbank for an undisclosed sum.

Set up in 1922, Suedwestbank currently has 28 branches and a workforce of around 650. The bank, majority owned by Santo Vermogensverwaltung, reported assets of over €7bn at the end of 2016.

Suedwestbank offers a range of services including retail, corporate banking, along with asset and wealth management. It caters to nearly 100,000 retail and business customers in the Baden-Wurttemberg province.

The deal is slated to be completed this year, subject to receipt of regulatory approvals.

“The expertise and long-standing tradition of Südwestbank, which operates in a very strong economic region of Germany, make the bank an ideal partner to help us expand our footprint and customer base. This transaction is part of our larger DACH regional strategy and will provide us access to excellent customers in a highly attractive market,” BAWAG said in a statement.