Australia's Link Group has agreed a deal to buy Pepper European Servicing (PES) from Pepper Group for a consideration of up to €200m.
The deal includes Pepper Ireland, which had about €18 billion of assets under management at the end of 2019.
Pepper Ireland services over 60,000 residential mortgage accounts, as well as about 10,000 commercial loan accounts. 80% of the residential mortgages it services are performing loans.
The deal is at a parent-owner level and does not impact commercial and residential customers whose loans are serviced by Pepper Ireland.
A spokesman for Pepper said that customers' terms and conditions - including agreed alternative repayment arrangements - and contact points remain the same as before.
He added that all affected customers will continue to be protected by the Central Bank's consumer protection codes and regulations as they did before.
Pepper Ireland employs over 500 people in Shannon and Dublin, but their jobs are not affected by today's news.
As well as its operations in Ireland, Pepper European Servicing provides loan servicing and asset management operations in the UK, Spain, Greece, and Cyprus.
It has about €40 billion of assets under management and a workforce of about 880.
Listed on the Australian stock exchange, Link Group employs over 7,000 people across 18 jurisdictions. In Ireland, Link Group already employs over 530 people in Dublin and Maynooth.
While today's deal is still subject to regulatory approvals, it is expected to be completed in the second half of 2020.
Once completed, PES will then integrate with Link Group's BCM business. Combined, the businesses will have about €130 billion of assets under management and employ over 1,800 people.
Fraser Gemmell, CEO of Pepper European Servicing, said today's deal reflects very positively on the quality of the PES business.
Mr Gemmell said he believes it is also very good news for the company's clients and people as it will facilitate the ongoing growth of the business.