Link Group has acquired Pepper Group’s European loan servicing, asset management and advisory businesses for €165m (£138m).

Pepper European Servicing (PES) has around €40bn of assets under management across a team of 880.

The acquisition is subject to approval and expected to complete in late 2020. Once the transaction is completed, PES and Link Group’s businesses combined will boast approximately €130bn of assets under management across a team of 1,800.

Robbie Hughes, chief executive, banking and credit management, at Link Group, said: “In 2019, we set our strategic vision to become the leading independent servicer in Europe with an expanding global footprint. This transaction accelerates that vision and will see two high-quality businesses integrated to create a leading pan-European asset servicer and manager, with significant potential for growth in existing and new markets.”

Chief executive at Pepper European Servicing Fraser Gemmell added: “We’re delighted to have completed this deal, which reflects very positively on the quality of the PES business and our team.

“We believe it’s very good news for our clients and people as it will facilitate the ongoing growth of the business while also providing Link Group with the opportunity to accelerate its European growth plans through the creation of a leading pan-European multi-asset servicer, which will leverage the combined strengths, experience and capabilities of the Pepper and Link Group platforms to deliver market-leading services for investors and financial institutions from across the globe.”