The deal includes some A$30 million in BOQ shares and is expected to be completed on 30 April 2013, subject to a 12-month holding lock. Under the terms, Virgin will give exclusive use of the Virgin Money Australia brand in the country to BoQ for up to 40 years in return for an ongoing royalty. The company will also have a seat on the Bank of Queensland board.

Leading the newly-acquired entity is financial services industry veteran Brian Bissaker, who has been appointed chief executive based out of the Sydney office. Bissaker was a wealth consultant at Commonwealth Bank Group until May 2012, when the bank reorganised its ranks. Incumbent VMA managing director David Curneen will leave the business but will act as a consultant for a period. 

Immediately following the completion of the deal, VMA will continue offering Virgin Money credit cards, savings accounts, life and general insurance and superannuation products through its existing partnership. Over time core banking products, such as personal loans, mortgage and transaction accounts will be added to its portfolio. The purchase will have no impact on VMA's existing or new clients.

VMA was established in 2009 and is still in its start-up phase, the firms said in a statement. Because it is currently a loss-making business, the transaction will result in an earnings-per-share dilution of 1-2 per cent in the 2014 financial year. It will become EPS positive during the second full year of ownership.