GE Capital to Acquire RBS' Factoring Business in Germany
GE Capital has signed an agreement with the Royal Bank of Scotland (RBS) to acquire 100% of RBS Factoring, RBS’s factoring and invoice financing business in Germany, for an undisclosed amount. The transaction is subject to a number of conditions, including regulatory approval.
RBS’s factoring and invoice financing business is a top 10 provider of accounts receivable (A/R) finance in Germany by financing volume. The business processes more than one million invoices a year and will add over €2bn of volume to GE Capital’s German factoring platform. The business had assets of €169m as of December 2009.
“The acquisition of RBS’s German factoring business perfectly fits our strategic focus on SMEs [small and medium enterprises],” said Rich Laxer, president and chief executive officer (CEO) of GE Capital Europe, the Middle East and Africa (EMEA). “Building on the near record volumes we financed in 2009, this acquisition will reinforce our position as a leading provider of accounts receivable financing in Germany.”