LeasePlan has completed divestment of 100% of its shares in LeasePlan Australia Ltd and LeasePlan New Zealand Ltd. to SG Fleet for a cash consideration of AUD $273 million and a 13% equity interest in SG Fleet.

Under an International Alliance Agreement, LeasePlan and SG Fleet will provide each other international customer and business opportunity referrals, product know-how and innovation sharing. LeasePlan CEO Tex Gunning will also join the board of SG Fleet.

LeasePlan executives believe joining forces with SG Fleet, one of the region’s leading car-as-a-service companies, the Australian  and New Zealand operations are well positioned to serve a growing international customer base, as well as compete for local market growth opportunities. Australia and New Zealand represent approximately 4% of LeasePlan’s global funded fleet and  4% of the company’s total 2020 revenues.

“Today, LeasePlan and SG Fleet have created a true leasing powerhouse in Australia and New Zealand, said Gunning. “Together, the combined business will be in an even stronger position to lead the subscription megatrend and provide compelling products and services to its customers in the region.”

Welcoming Gunning to the SG Fleet board, CEO Robbie Blau said the combined team was excited to start taking full advantage of the potential created by joining forces with a highly respected industry peer.