Sweden’s Nordax Bank has unveiled plans to buy Norwegian Finans Holding, the parent company of Bank Norwegian.

The specialist bank intends to place a NOK17.8bn ($2.1bn) all-cash offer to acquire all outstanding Norwegian Finans Holding shares.

It plans to fund the transaction through a combination of equity, debt and cash on balance sheet.

Launched in 2007, Bank Norwegian is an internet bank providing consumer loans, credit cards and savings accounts.

According to Nordax Bank, the deal is expected to create a specialist lender in the Nordics and enable the combined firm provide customers with a more competitive and expanded product offering.

Nordax CEO Jacob Lundblad said: “We are deeply impressed with the significant achievement of Bank Norwegian management and employees in developing the company to its current position as a leader in the Nordic consumer finance market.

“Bank Norwegian has a solid track record of profitable growth, proven scalability of its platform, and resilience in the face of Covid-19 and the current macroeconomic environment.

“Our interest in Bank Norwegian is driven by our conviction that the transaction will lead to long-term sustainable growth for the combined bank, backed by our supportive owners.”

The offer is expected to be launched in due course after Nordax completes due diligence of NFH, including Bank Norwegian, to its satisfaction.

It aims to announce the result of the offer during the first half of this year.