A company in which Bermudian-based Athene Holding Ltd is lead investor has signed a stock purchase agreement with LeasePlan Corporation to acquire LeasePlan USA.

LeasePlan Corporation, the car-as-a-service company, announced that Wheels Donlen’s parent company will acquire LeasePlan USA and combine the business with Wheels Donlen to create a unified fleet management business.

Athene said this combination created a strong competitor in mobility, which would allow Wheels Donlen and LeasePlan USA to provide enhanced solutions to corporate fleets.

The combined company should benefit from added scale, materially increased investment capacity, and differentiated capabilities, and be better positioned to service customers and facilitate growing trends towards electric vehicles and digital technologies.

With $246 billion of assets, Athene will be well positioned to provide the combined company with deep capital support for its go-forward businesses to offer clients an enhanced suite of solutions across fleet, last-mile delivery, trucking, and equipment.

As this investment aligns with Athene’s long-term investment approach and ethos, there will be a measured approach to integration of the businesses over time, prioritising seamless and enhanced customer experience with continuity of the systems that customers depend on.

Both the management team and board of directors will include representatives from Wheels Donlen and LeasePlan USA.

LeasePlan USA CEO Matt Dyer will become a senior executive and board member of the combined company.

Additionally, as part of this transaction, LeasePlan USA and LeasePlan Corporation will enter into a co-operation agreement to deliver global fleet management services to both companies’ international clients following the completion of the transaction.

The existing global alliance between Wheels Donlen and ALD will also continue.

The transaction is expected to close by year-end, subject to customary closing conditions including regulatory approvals.

Jim Belardi, CEO of Athene, said: “For Athene, this transaction follows our longstanding strategy to invest in businesses with strong fundamentals, underwriting and direct origination capabilities.

“We have high conviction in the growing mobility market and the leading role that the combined Wheels Donlen-LeasePlan USA can play in serving companies’ fast-evolving fleet needs.

“We are confident their strong business fundamentals and focus on sustainability and innovation will benefit their customers and Athene’s investors alike.”

Since the 2021 announcement of their merger within Athene, Wheels Donlen has emerged as one of the most innovative companies in the fleet management industry.

LeasePlan said it was a global leader in car-as-a-service, with approximately 1.9 million vehicles under management in 29 countries.

LeasePlan purchases, funds and manages new vehicles for its customers, providing a complete end-to-end service for a typical contract duration of three to four years.