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Bank of Ireland Group PLC - Dublin-based lender - Completes acquisition of Dublin-based stockbroker and wealth manager J&E Davy. The final price is set at EUR427 million, after adjusting for Davy's capital position on Wednesday. A quarter of the purchase price is delayed for two years, and up to EUR40 million additional is due from 2025 depending on Davy's business performance. Bank of Ireland also will pay for excess cash totalling EUR126 million, following two disposals by Davy earlier this year, including of Davy Global Fund Management.
Bank of Ireland says the purchase, which was financed through existing resources, will reduce its CET1 capital ratio by 80 basis points; however, it says the deal will be accretive to earnings in the first full year of ownership. It added that Davy will "materially increase" Bank of Ireland's wealth management and fee income. The bank noted that Davy's assets under management of about EUR20 billion will be combined with its own of EUR22.5 billion. "As the unrivalled Irish leader in wealth management and capital markets, we are ambitious for the future of Davy within the group," says Bank of Ireland Chief Executive Francesca McDonagh. "The completion of the deal today represents a fantastic addition to our franchise and business model."
Current stock price: EUR6.29
12-month change: up 17%
By Tom Waite; thomaslwaite@alliancenews.com
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