Saxo Bank has agreed to purchase Dutch online discount brokerage company BinckBank. The deal was circulating on Friday as Finance Magnates reported on a potential €425 million transaction.
After the weekend passed, the companies now confirm that all of the shares of BinckBank will get acquired by the Danish multi-asset brokerage company. The deal is worth circa €425 million with all of the Dutch company’s shares being purchased for cash at €6.35 per share.
The value of the offer represented a 35 percent premium over the closing price on Friday. Saxo Bank will be financing the deal with cash in hand and an additional injection of equity from shareholders.
Acquisition Rationale
The companies are highlighting some synergies that they say will ultimately make them better positioned for the current market dynamics. The deal is seen to improve the companies’ geographic footprint, product offerings, and customer bases, covering the full retail client spectrum from mass retail to high-end.
Saxo Bank’s CEO and founder Kim Fournais highlighted that the merger would yield the necessary scale to further increase investments in new technology and talent.
“As the investment and trading industry matures and faces new Regulation , as well as rising expectations for digital client experience, scale, technology and multi-asset capabilities, become increasingly key to long-term success,” said Fournais.
BinckBank Client Base
Since its creation in 2000, BinckBank has become a retail Online Trading leader for retail clients in the Netherlands and Belgium. The company also has a strong position in France and Italy.
The chairman of BinckBank’s executive board Vincent Germyns said that the merger would help both companies realize significant economies of scale. In the coming two to three years, the deal will result in staff consolidation.
“The proposed transaction is the result of extensive negotiations between BinckBank and Saxo Bank over a period of several months and a shared vision for the combination going forward,” said John van der Steen, chairman of the BinckBank supervisory board.
