German-based Deutsche Bank has agreed to acquire UK corporate broking and advisory house Numis in an all-cash deal that values the latter at £410m.
Under the terms of the acquisition, Deutsche Bank will pay a total of 350 pence per share to Numis shareholders.
Following the transaction, Deutsche Bank will combine its existing UK and Ireland corporate finance business with Numis in a move to establish a dominant force in UK investment banking.
Numis offers strategic advice and capital market connectivity to 166 retained corporate broking clients.
It includes 64 clients in the Financial Times Stock Exchange (FTSE) 350, representing almost 20% of the index.
Through the transaction, Deutsche Bank expects to expedite its Global Hausbank strategy by engaging deeply with the corporate client segment in the UK.
Besides, the deal is expected to allow Deutsche Bank to provide comprehensive financial and advisory requirements to over 170 corporate clients.
The combined company plans to make use Deutsche Bank’s extensive and global product offering across the corporate and international private banks.
Furthermore, it expects to take a leading position in strategic advisory, corporate broking, sales, equity and debt capital markets, and equity research and execution.
The deal is anticipated to close in Q4 2023, subject to certain conditions, including approval by Numis shareholders and receipt of regulatory approvals.
Deutsche Bank corporate bank and investment bank head Fabrizio Campelli said: “The combination enables us to realise greater revenue opportunities across our shared client base and to deepen our engagement with UK corporates.
“There is strong and complementary cultural alignment between Deutsche Bank and Numis that will propel the combined business to deliver exceptional client service, and we look forward to welcoming Numis management and employees to the Deutsche Bank Group.”