KRUK signs Wonga acquisition agreement
KRUK has signed an agreement to acquire all shares in wonga.pl sp. z o.o., a company operating on the online lending market in Poland. The transaction was earlier approved by the President of the Office of Competition and Consumer Protection.
The transaction value is PLN 97.1m, comprising the value of the shares in the target company and brand ownership (PLN 3.0m) as well as repayment of the company’s liabilities owed to the Seller (PLN 94.1m).
“We may officially announce a new chapter in our presence on the open lending market in Poland. KRUK is taking over an autonomous organisation with a proven online business model and a strong risk management system, driven by professionalism, strong ethics and consumer-oriented approach, something that is of particular importance in the context of the upcoming regulatory changes. In turn, Wonga and its seasoned team are gaining a stable partner capable of providing access to efficient financing sources to fund the fast growing business. Wonga will help to expand the range of our existing business lines of debt buying, credit management, credit reference and Novum loans for selected former debtors. Wonga perfectly fits into the KRUK Group’s pursuit of its overriding objective to drive sustained strong growth and generate PLN 700m in net profit by 2024,” said Piotr Krupa, KRUK S.A. CEO.
“We are opening a new chapter in our history. We want to grow fast and reach customers who are interested in bigger and longer-term instalment loans. We create new products, and we have very ambitious plans. Being part of the KRUK Group gives us the opportunity for rapid expansion,” said Tomasz Fedyna, Member of the Management Board of wonga.pl sp. z o.o. “I am glad that we have become part of a large, strong and future-oriented financial group.
KRUK first announced its intention to carry out the transaction in March when it signed a letter of intent with the company’s previous owner Wonga Worldwide Limited (in administration).
Wonga has been present in Poland since 2012 and currently employs more than 100 people. It has provided over 1.5m loans since its inception, and its customer base has exceeded 1.1m accounts. In 2017, the company generated revenue of PLN 100m. Wonga offers products for all market segments, selecting customers with the safest risk profiles compared to the rest of the industry.