BNP Paribas Lease Group, Key Equipment Finance International and
SG Equipment Finance are understood to be in negotiations with
software giant Microsoft over its Microsoft Financing
programme.
Meanwhile, there is uncertainty over the future role of De Lage
Landen (DLL) in the vendor finance programme, which is
believed to involve around €500 million of software lease
agreements.
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In July, DLL won a bid to replace CIT, which last month filed
for Chapter 11 bankruptcy, as the funding provider for Microsoft’s
products in Europe. However, it now appears that Microsoft either
plans to use more funding partners, or switch from DLL to another
provider.
Sources close to the deal said BNP Paribas Group has become the
frontrunner in the bid to win the contract. Nigel Jenkins, managing
director of Microsoft Financing EMEA, said no long-term partnership
had been agreed. “We are yet to contract with any organisation, and
should this occur, we will be making any announcements through our
PR team,” he said.
This is not the first instance that DLL has taken over a CIT
portfolio. At the start of this year, when CIT pulled out of the UK
health care market, DLL stepped in to buy its leasing portfolio –
incorporating all of CIT’s operating leases with the NHS – for
€18.5 million.
Earlier this year, DLL also acquired CIT’s Lansing Linde
materials handling programme. CIT had previously acquired this
vendor finance agreement, along with several others, from Barclays
in 2006.
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By GlobalDataFor broader details on the current state of CIT’s
vendor operations, please refer to December’s issue of Leasing
Life
Fred Crawley
