Heartland Group Holdings, a New Zealand-based financial services group, has entered into a conditional share purchase agreement to acquire Challenger Bank, an Australian digital bank, from investment management firm Challenger Limited.

Valued at approximately AUD 36 million ($23 million), the acquisition will help Heartland Group Holdings expand in Australia.

Challenger Bank is an authorized deposit-taking institution (ADI), which caters to customers with savings and lending products, including government-guaranteed retail term deposits, home loans, and reverse mortgage origination.

Based on financial metrics as of 30 June 2022, Challenger Bank had AUD 228 million in deposits, AUD 89 million in retail lending, and AUD 17 million in corporate lending.

Heartland Group Holdings’ prevailing livestock and reverse mortgage businesses in Australia will be transferred to Challenger Bank, upon the successful completion of the deal.

The Kiwi financial services group is planning to cover the costs of the acquisition through existing resources.

The share purchase agreement is subject to obtaining the required regulatory approvals.

Previously operating as MyLifeMyFinance Limited, Challenger Bank was acquired in July 2021 by Challenger.

For Heartland Group Holdings, the acquisition of Challenger Bank follows the May 2022 acquisition of StockCo Australia, a specialist livestock financier.

  Australia, Challenger Bank, Challenger Limited, Heartland Group Holdings, New Zealand