Cembra has signed a share-purchase agreement to buy Byjuno AG and its sister company Intrum Finance Services AG from Intrum AG. Byjuno is a major provider of invoice payment solutions in Switzerland with a billing volume of CHF 408 million in 2021 and financing receivables of CHF 39 million as per end of 2021. The transaction is expected to close in the fourth quarter of 2022 subject to customary closing conditions.
Adding profitable growth to the buy now pay later business
With this acquisition, Cembra is taking another step to deliver on its strategy of expanding its embedded finance solutions, with payment and financing options directly integrated into partner and customer journeys. Payment by invoice is the most popular remote selling payment form in Switzerland, with billing solutions and buy now pay later (BNPL) services set to become more important at both traditional points of sale and online shops. Cembra continues to expect double-digit growth in this market in Switzerland.
Creating a leading provider for invoice payment solutions
Cembra intends to combine Byjuno with its subsidiary Swissbilling to create a leading provider of invoice payment solutions with the aim to establish compelling solutions for online and point-of-sale checkouts for pay-by-invoice services in Switzerland. Offerings from both companies to about 1,200 merchants in Switzerland will be maintained, and customers will benefit from a broader range of products and services. Christian Stolz, CEO of Byjuno, will be appointed CEO of the combined business and work in tandem with Jean-Christophe Calmes, CEO of Swissbilling, who will act as Deputy CEO. As part of the transaction, Cembra and Intrum AG also agreed on a cooperation in BNPL debt collection activities and credit information.
Positive net income contribution from 2023 on
The transaction will accelerate Cembra’s strategy execution and target achievement in the BNPL business. Excluding one-off integration costs of CHF 4-5 million to be incurred over 2022 and 2023, Cembra expects annual incremental net income of at least CHF 6 million from 2023 on, and to achieve its CHF 10-20 million net income target for the BNPL business by 2026 at the latest. The purchase price amounts to CHF 60 million, and the transaction is expected to have an impact of about 1.0 percentage point on the Group's capital ratio at closing. Including the already announced impact of the CECL implementation, the Tier 1 capital ratio is expected to be slightly above the 17% mid-term target at 31 December 2022.
CEO Holger Laubenthal commented: “This transaction is an important step in delivering on our strategy and enhancing our embedded finance solutions. By bringing Swissbilling and Byjuno together, we will create a leading platform for billing solutions and pave the way to accelerate growth across our Embedded Finance product suite and BNPL. Together we can offer our partners a broader range of products and services, and consumers will benefit from even simpler and more flexible payment options. Our joint ambition will be to create compelling solutions for online and point-of-sale checkouts for pay-by-invoice services in Switzerland.”
Trading update: Positive business performance continues in the third quarter
Cembra’s positive business performance continued in the third quarter of 2022. Cembra expects Q3 net revenues to increase by 3% year on year, with commission and fee income increasing by about 10%. In the credit card business, Cembra expects revenues to increase 8% year on year in Q3, supported by the successful rollout of the new credit card range Certo! since July 2022.
Cembra confirms its outlook for 2022 and its mid-term targets.1
This media release and an investor presentation are available at www.cembra.ch/investors.
1 Cembra aims to achieve an ROE of 13–14% in 2022-2023 and above 15% starting in 2024 and to pay a dividend of at least CHF 3.85 for 2022, which will increase thereafter based on sustainable earnings growth. The bank is also targeting a Tier 1 capital ratio target of at least 17%.
About Byjuno
Byjuno is a major provider in digital payments in Switzerland, offering real-time factoring for merchants and convenient pay-by-invoice solutions for consumers with instant credit functionalities. Byjuno was founded in 2014, employs about 45 people and has established partnerships with several leading Swiss brands.
About Swissbillling
Founded in 2011 in Lausanne, Swissbilling is an example of a successful fintech company and has become one of the leaders in the Swiss market for online and offline invoice financing and billing services. The company serves more than 900 merchants in Switzerland. In 2017, Swissbilling was acquired by Cembra.
About Cembra
Cembra is a leading Swiss provider of financing solutions and services. Our product range includes consumer credit products such as personal loans and auto leases and loans, credit cards, the insurance sold in this context, invoice financing, and deposits and savings products.
We have over 1 million customers in Switzerland and employ about 1,000 people from 42 different countries. We have our headquarters in Zurich and operate across Switzerland through our network of branches and our online distribution channels, as well as through our credit card partners, independent intermediaries and car dealers.
We have been listed as an independent Swiss bank on the SIX Swiss Exchange since October 2013. Cembra is rated A– by Standard & Poor’s and is a constituent of the MSCI ESG Leaders Indexes as well as in the 2022 Bloomberg Gender Equality Index.
Disclaimer regarding forward-looking statements
This media release by Cembra Money Bank AG (“the Group”) includes forward-looking statements that reflect the Group’s intentions, beliefs or current expectations and projections about the Group’s future results of operations, financial condition, liquidity, performance, prospects, strategies, opportunities and the industries in which it operates. Forward-looking statements involve matters that are not historical facts. The Group has tried to identify those forward-looking statements by using the words “may“, “will“, “would“, “should“, “expect“, “intend“, “estimate“, “anticipate“, “project“, “believe“, “seek“, “plan“, “predict“, “continue“ and similar expressions. Such statements are made on the basis of assumptions and expectations which, although the Group believes them to be reasonable at this time, may prove to be erroneous.
These forward-looking statements are subject to risks, uncertainties and assumptions and other factors that could cause the Group’s actual results of operations, financial condition, liquidity, performance, prospects or opportunities, as well as those of the markets it serves or intends to serve, to differ materially from those expressed in, or suggested by, these forward-looking statements. Important factors that could cause those differences include, but are not limited to: changing business or other market conditions; legislative, fiscal and regulatory developments; general economic conditions in Switzerland, the European Union and elsewhere; and the Group’s ability to respond to trends in the financial services industry. Additional factors could cause actual results, performance or achievements to differ materially. In view of these uncertainties, readers are cautioned not to place undue reliance on these forward-looking statements. The Group, its directors, officers and employees expressly disclaim any obligation or undertaking to release any update of or revisions to any forward-looking statements in this presentation and these materials and any change in the Bank’s expectations or any change in events, conditions or circumstances on which these forward-looking statements are based, except as required by applicable laws or regulations.
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