The acquisition of Dutch online brokerage BinckBank for EUR 424 million is a win-win situation according to Saxo Bank CEO as clients get better products, prices, platforms, and services, and the firm gains scale to further step up investments in technology.
Copenhagen based Retail FX broker Saxo Bank has reached a conditional agreement to buy BinckBank on a recommended all-cash public offer of EUR 6.35 (cum dividend) per share, amounting to a total of EUR 424
million, which represents a premium of 35% over the closing price of 14 December 2018.
The transaction was unanimously supported and recommended by BinckBank’s executive board and supervisory board as both parties view the deal as a positive step for the trading industry.
Kim Fournais, CEO and founder of Saxo Bank, commented:
“Combining BinckBank with Saxo Bank is a true win-win for all parties.
Clients will get better products, prices, platforms, and services,
employees will benefit from enhanced career opportunities and,
importantly, we will gain the necessary scale to further step up
investments in technology and in our people. 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. We have a strong cultural fit with BinckBank based on a shared vision and purpose to democratize investment and empower everyone to take control of their financial destiny. Our two companies complement each other in terms of geographical footprint, brand, client segments, product suite and not least in the talented employees of both companies.”
Vincent Germyns, chairman of the BinckBank executive board, said:
“Since the origins of BinckBank in 2000, we have managed to build a
strong position. We have become the market leader in the Netherlands and Belgium and are strong challengers in France and Italy. We are
confident that by combining BinckBank with Saxo Bank, we will be able
to further strengthen our offering and growth in these markets. As
such, it is important to note that Saxo Bank shares both BinckBank’s
vision and a mindset focused on giving investors access to financial
markets through technology and innovative solutions. Therefore, the
combination of BinckBank and Saxo Bank is a natural fit and secures
the future growth of BinckBank within a bigger and stronger
organization and provides our customers with an even broader range of
innovative products and services in the area of trading and investing. Merging both companies will help realize important economies of scale. On a term of two to three years, this will, of course, have consequences for staff. As far as possible these consequences will be met through natural staff turnover. In the case of redundancies, a good severance scheme will apply. The executive board, supervisory board and works council support this severance scheme unanimously.
Saxo Bank will fund the transaction via a combination of equity injections by its shareholders and cash at hand. The offer is expected to close in Q3 2019.
“The combination of a very attractive cash price, deal certainty, and strong protection of stakeholder interests through the non-financial covenants lead the boards to unanimously recommend this transaction”,
said John van der Steen, chairman of the BinckBank supervisory board.
The acquisition of BinckBank is a strategic move by Saxo Bank for its excellent complementarity in geographic footprint, product offerings, and customer base, covering the full retail client spectrum from mass
retail to high-end. Saxo Bank intends to combine its industry-leading technology platform and product suite with BinckBank’s large customer base and strong distribution capabilities.
Ricardo Esteves
Ricardo Esteves has seen business and economics through many lenses. He joined the Financial Services Industry in 2009, and has been a financial journalist since 2011. He holds a degree in Business Administration and has experience producing real-time news, from both buy-side and sell-side, as well as for retail traders, brokers and service providers. Esteves' work has appeared in a variety of online publications including FX Street and FinanceFeeds.
