"Together the combined group can offer more great products and services to a larger customer base."
- CEO of Virgin Money, David Duffy
The boards of Nationwide Building Society and Virgin Money have agreed the terms of a cash acquisition of Virgin Money by Nationwide.
Nationwide announced its intention to acquire Virgin Money earlier this month.
The total value of 220 pence per Virgin Money Share values the company at approximately £2.9 billion.
In a statement, the firms said: "The Boards of Nationwide and Virgin Money believe that the Acquisition will combine two complementary businesses, creating the second largest provider of mortgages and savings in the UK."
The aquisition would create a combined group with total assets of approximately £366.3 billion and total lending and advances of approximately £283.5 billion.
Nationwide intends for the Virgin Money business to rebrand over time. Virgin Money will keep its name for a four year period, after which it will have a two-year period to rebrand to Nationwide.
Chairman of Nationwide Building Society, Kevin Parry, commented: "Following full consideration and the appropriate due diligence, and after taking comments from members into account, the Board of Nationwide's assessment is that the binding offer to acquire Virgin Money is in the best interests of the Society and its present and future members."
CEO of Nationwide, Debbie Crosbie, said: "This acquisition strengthens Nationwide and means we can offer more value and broader services for our current and future members. More people will experience the benefits of mutual ownership and the customer-focused approach of a building society. This includes Nationwide's unique Branch Promise, which we are extending until at least the start of 2028. The Promise will also apply to Virgin Money branches."
Chairman of Virgin Money , David Bennett, commented: "The Board of Virgin Money believes that this strategic transaction recognises the strengths and opportunities in our business. We're pleased to recommend the terms agreed with Nationwide, which deliver an attractive premium for our shareholders in cash and reflect the Group's strong future prospects, combining two complementary businesses."
CEO of Virgin Money, David Duffy, added: "The proposed combination with Nationwide presents an exciting opportunity to build on Virgin Money's significant strategic and operational progress, including the consistent growth in our retail and business customers, deposits and target lending. Together the combined group can offer more great products and services to a larger customer base."
