J. Safra Sarasin to buy 70% stake in Saxo Bank
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The news: Private Swiss bank J. Safra Sarasin Group, has agreed to buy a 70% stake in Denmark’s Saxo Bank.
The numbers: The deal values Saxo at €1.6 billion ($2.74 billion), implying a purchase price of around €1.1 billion, making the deal Safra’s second-largest purchase to date.
Safra Sarasin oversees around USD247 billion in client assets, while Saxo Bank oversees USD118 billion.
The context: In a statement on the acquisition, Safra Sarasin said it has agreed to buy Finnish Mandatum’s stake of 19.8% in addition to Chinese group Geely’s 49.9% stake. Saxo Bank’s founder and CEO Kim Fournais will remain in his role and retain approximately 28% ownership.
Safra Sarasin said that it plans to integrate Saxo Bank’s technology platform, and that Saxo’s expertise in digital investments and trading platforms is complementary to Safra Sarasin’s wealth and asset management solutions. The acquisition will also enable Safra Sarasin to diversify its client base, as the two institutions operate in different client segments.
Saxo Bank appointed Goldman Sachs to facilitate a sale in June last year.
What they said: Chairman of J. Safra Sarasin Group, Jacob J. Safra said that the acquisition “further increases our competitive edge” and that the addition of a “leading international fintech bank…underscores our strong commitment to shaping the future of financial services.”
The sources: J. Safra Sarasin press release, Bloomberg
