STOREBRAND ASA: Storebrand strengthens its retail savings offering by acquiring Kron
Storebrand ASA has entered into an agreement to acquire the Norwegian fintech company Kron AS ("Kron").
"Kron has been successful in creating enthusiasm for savings and investments through their digital application for mutual funds and pensions. Kron's user experience together with Storebrand's product expertise and strong distribution power is an attractive combination for new and existing customers. This is perfect match," says Storebrand's CEO, Odd Arild Grefstad.
"Together, we will continue to create even better solutions and reach out to even more people. We will continue to simplify investments and look forward to strengthening our offering in the savings and investment market – to the customers' benefit," says Kron's CEO, Emma Tryti.
Kron offers its users investments into a wide range of mutual funds through a compelling application for digital advisory services and investment solutions. It was established in 2017 as a spin-off from the Nordic wealth advisor Formue. Approximately NOK 7 billion in assets are invested by 67,000 individual customers who have opened an investment account on their platform. Kron has also quickly become a popular application for customers who opt to manage their Individual Pension Account themselves. Kron will advance Storebrand's digital capabilities and become Storebrand's digital platform for savings and investments in the retail market. For existing users, Kron will remain Kron.
"The Kron team has very strong capabilities within digital development and service design, and they will continue to develop the application and its services. Kron focuses on simplicity, user experience and making good decisions on behalf of customers. In Storebrand, we look forward to working with the team to continue to develop the solution for existing Kron users and to make it accessible and serve all our retail customers," says Storebrand's EVP for Retail Customers Norway, Heidi Skaaret.
The immediate impact of the transaction on Storebrand's financial statements and key figures will be limited. The purchase price (equity value) is NOK 400 million and the effect on the solvency ratio is estimated to be minus 1.5 percentage points. An additional consideration will be contingent on future business development of Kron. The acquisition is expected to generate both product and production synergies between the companies.
The transaction is expected to conclude in the fourth quarter of 2022 and is subject to regulatory approval as well as certain other customary transaction conditions.
Thommessen acts as the legal adviser and EY as the financial due diligence advisor for Storebrand.
Lysaker, 5 September 2022
For further inquiries, please contact:
Head of Investor Relations & Rating, Daniel Sundahl:
daniel.sundahl@storebrand.no or (+47) 913 61 899
For media requests:
PR Manager, Synnøve Hjelle Halkjelsvik:
synnove.hjelle.halkjelsvik@storebrand.no or (+47) 957 45 105
Storebrand is a Nordic financial group, delivering increased security and financial wellness for people and companies. We offer sustainable solutions and encourage our customers to take good economic decisions for the future. Our purpose is clear: we create a brighter future. Storebrand has about 40.000 corporate customers, 2 million individual customers and manages NOK 1.009 billion. The Group has its headquarter at Lysaker outside of Oslo, Norway. Storebrand (STB) is listed on Oslo Stock Exchange.
This is information is pursuant to the EU Market Abuse Regulation and subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.